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EUR/USD Erases Gains as US Labor & House Markets Show Signs of Improvement

October 25, 2012 by

EUR/USD rallied today, but failed to keep gains and dropped. Europe continues to struggle amid the crisis, while the United States show improvements in various sectors of the economy. Today, labor and housing markets showed signs of improvement. Durable goods orders were also very good.

Initial jobless claims were at the seasonally adjusted rate of 369k last week, near the median analysts’ estimate, falling from the previous week’s revised rate of 392k. (Event A on the chart.)

Durable goods orders climbed as much as 9.9% in September. That is compared to the forecast of 7.1% and the August slump by 13.1%. (Event A on the chart.)

Pending home sales barely changed in September, rising by 0.3%. On one hand, that was significantly below market expectations of 2.3%. On the other, the reading was far better than the August drop by 2.6%. The report said that “home contract activity remains at an elevated level”. (Event B on the chart.)

EUR/USD for 2012-10-25

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