The currency market continues to look for direction. After reaching 27 month high against the Yen and 2 year high against the Pound Sterling the US Dollar traded downward. Recent data suggests the US real estate market appears to be cooling quicker than expected, which in turn might make the fed be a bit more cautious with raising rates. Bloomburg reports:
The dollar dropped against the euro and the yen after an industry report showed U.S. home sales in October fell more than analysts forecast.
The report may damp speculation about how many more times the Federal Reserve will raise interest rates. The Fed has lifted rates 12 times since June 2004 to 4 percent from 1 percent, helping the dollar gain more than 15 percent against the euro and the yen this year.
Read more: Dollar Declines After U.S. Home Sales Fall More Than Forecast
