US Existing Home Sales Beat Expectations – USD Ignores

Sales of second-hand homes are on the up, hitting an annualized level of 5.48 million in October, better than 5.42 million expected and 5.37 million beforehand. The rise is accompanied by another interesting fact: the level of inventories is at its lowest since 1999 – yes before the previous crisis and also 18 years ago.

The good news fails to impress the US dollar, which is not rising even against weak currencies.

EUR/USD is recovering from the lows and trading at 1.1740. The common currency suffered from the prospects of another round of German elections.

GBP/USD is trading around 1.3250, within range and also up from the levels seen earlier.

USD/JPY, the currency pair that usually best reflects US economic indicators, is trading at 112.30, down on the day. What cannot go up, must come down.

AUD/USD, which hit lower lows, is recovering to 0.7580.

USD/CAD is at 1.2760, partially helped by the price of oil, which tops $57 on WTI.

Why is the dollar weak? Perhaps worries are mounting. Congress is now in recess ahead of Thanksgiving. The hot topic on the agenda is the tax reform. As time passes by, opposition to the tax bill can accumulate, as it was never popular.