Daily Forex Commentary for 020409

February 4, 2009

Unexpected Rise in Pending Home Sales Tanks U.S. Dollar

An unexpected rise in U.S. pending home sales surprised the Forex markets, weakening the Dollar from start to finish of the New York trading session. The release of the data triggered a strong appetite for more risky assets and sent the Dollar lower.

In addition to the friendly report, the Dollar was weakened by news of additional stimulus plans from the Bank of Japan and the Reserve Bank of Australia. The central bank activity provided optimism for traders …