Forex News – US pending home sales rise more than expected

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US pending home sales rose more than expected in March to reach a two-year high, offering hopes of a pickup in the sluggish  housing sector.

A report published by the US National Association of Realtors showed the Pending Home Sales Index, based on contracts signed in March, rose to 101.4, which is an increase of 4.1 percent. This is the highest level since April 2010.

Forecasts were for a mere increase of 1.0 percent after a previously reported 0.5 percent fall.

The  strong rise in the data  was reassuring for the housing market and could signal a pick up in home resales after they stumbled in the past two months.

The housing market, which is burdened  with an oversupply of unsold properties, has struggled to regain its footing since collapsing in late 2006. It remains a major constraint to faster economic growth.

The data helped improve market sentiment which had been dampened just earlier by disappointing US initial jobless claims data.

EURUSD rose back up after the data at 10am New York time to 1.3253 from 1.32100.