http://www.dailypfennig.com/
"...currency markets were also pretty uneventful with the dollar continuing to drift lower and the commodity based currencies moving higher..."
"...currency markets have been establishing a base pattern, with the dollar index trading right around 80 for about two months. Last week the DXY started drifting lower, breaking out of the sideways pattern and establishing a new move lower. The Euro chart shows a similar pattern, drawing a line just over 1.40 for a couple of months before starting to move higher last week. This is a very healthy pattern for the currencies, and shows the underlying downward trend of the US$ remains. With this 'base' established, any pull back by the currencies will now have pretty firm resistance at these levels..."
"...This week looks like it will be a bit more eventful on the data front, with reports on New Home sales starting us off this morning. This report is expected to show a small uptick in the sales numbers for June, another sign that the housing market is at least slowing its descent. New home purchases hit a record low of 329,000 in January, and are predicted to come in at 352,000 for June. Falling prices and near record low mortgage rates have started to lure buyers back into the market, but with unemployment rising I question just how sharp of a rebound we will have. There are only so many 'first time homebuyers' out there, and unlike the go-go days of yore, individuals who are out of work are not going to be able to qualify for home loans..."
"...Sure the banks are making money, how couldn't they with the US government helping them hide all of their bad debts, and pumping them full of cheap money. But how long can the US govt. continue to support the economy on their own? Consumers don't look likely to open up their wallets anytime soon as they continue to pay down debt. And rising unemployment will keep the clamps on consumer confidence here in the US. Without a big pop in consumer demand, the US economy will struggle to recover, and the dollar will continue to move lower..."
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