Forex: Declining US single family home prices boost the USD

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The US dollar continued to make gains today against the Euro. The single currency fell to a session low following the announcement that the January US single family home prices have fallen for the seven month in a row . This announcement possibly could bring a new cash flow stream in the states from people wanting to take advantage of the lower prices and invest in real estate, or non-US citizens seeking a home there. On the other hand this could be seen as evidence that the recession period is not over yet.

Following the announcement the EURUSD pair dropped from 1.4071 to 1.4058. Similarly the USD made gains against the Yen by rising from 82.33 to 82.44 following the house data announcement. The EURUSD pair is currently traded at 1.4061 while the USDJPY at 82.379.