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Home » Online Forex Trading Blog » US Pending Home Sales Continue Decline

US Pending Home Sales Continue Decline

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In another sign of home owner fear, it was reported today by the National Association of Realtors that fewer Americans signed up to purchase homes in the month of September. Although consumer/homeowner sentiment still remains lukewarm at best, it seems that institutional banks are also playing their part in this grave statistic. As the credit crisis continues to loom over markets, bankers will forever keep lending rates high and credit checks stringent. The idea kept pending home sales figures down for the month, declining by 0.7 percent. There is a bright side, however. Although the report showed a monthly decline, the actual number was considerably improved when taking into account a majority of professionals were expecting a further decline of 2-3 percent. With the Obama administration plans for a $700 billion dollar rescue package and a priority of no home left behind, some activity may be creeping in and boosting market sentiment.

Lowest Rate In 50 Years

Following suit, central bankers in Canada reduced benchmark interest rates once again as recessionary conditions continue to hang heavy over the world’s ninth largest economy. More than market analysts had expected, the Bank of Canada decided to reduce interest rates to 1.5 percent, cutting 75 basis points or 0.75 percent off rates. This accommodative decision was made as Governor Mark Carney and fellow decision makers continue to see recessionary conditions that will likely worsen in the short term as overall growth is expected to fall by more than 1 percent annually. Incidentally, the decision reflects figures that have already casted a dark time for the economy, placing Canada in the first recession in almost 16 years. As a result of the decision, the Canadian dollar has remained under pressure throughout the session as the US dollar trades higher against the Loonie at a price of C$1.2634 compared to the sub C$1.2500 close yesterday.

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About the Author -

Richard C. Lee is the Chief Currency Strategist for OnlineForexTrading.com. Employing both fundamental and technical models, Richard has previously been featured on DailyFX.com, Bloomberg, FX Street.com, Yahoo Finance and Trading Markets.com. In analyzing the markets, he draws from an extensive experience trading fixed income and spot currency markets in addition to previous bouts in options, futures and equities.

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