Looks like the housing glut may continue for a while longer, based on the big fall in new home sales in November. The expected expiration of the first-time home buyer credit looks to have undermined sales more than expected.
EUR/GBP has moved higher with EUR/USD as cable lags the bounce back in EUR/USD. Traders are afraid the BOE will introduce new measures to boost money supply since QE has failed to fill the bill to date.
Hopes for a quickened pace of tightening from the Fed have been dealt a blow by the data today as well. Hopes weren’t that high to begin with but any tightening move is delayed now to the more distant future.
EUR/USD trades now at 1.4310 having traded as high as 1.4317. 1.4320/30 is first resistance with more at 1.4372.