Dollar Lower As Traders Prepare For Long Weekend

The US dollar is softer against the Euro, Swiss franc, British pound and Japanese yen Friday as traders exit their dollar long positions before the long weekend starts.

EUR/USD rose to an intraday high around 1.5780; USD/CHF met resistance around 1.0335 and is now trading around 1.0240. US markets will be closed on Monday in observance of Memorial Day and UK markets will also be closed for the Spring Bank holiday. US bond markets will be closed early today. With traders getting ready to attend barbeque parties with their friends and families, trading volume in the currency and stock markets will be light today.

The only piece of economic data out of the US is the National Association of Realtors’s existing home sales. US home resales fell a second consecutive month during April, falling 1% to a 4.89 million annual rate, a fall from March’s revised 4.94 million annual pace (was 4.93 million) while inventories rose and prices dropped sharply. The median home price was $202,300 in April, down 8% from $219,900 a year ago. Potential buyers are taking their time in choosing the house they want, and at the low price they are holding out for.

And not only that, tighter credit lending had made it more difficult for even prime borrowers to obtain good loans. But now, NAR is urging Americans to consider shopping for a mortgage loan as mortgage restrictions have been relaxed somewhat. If they buy up, home inventories will be reduced, and there should be gradual price improvements.

Eurozone Data

The Eurozone composite purchasing managers index, which measures private-sector activity, fell to its lowest level in almost five years in May. Data released Friday showed that the index fell to 51.1 from 51.9 in April, worse than an expected reading of 51.4.

France Wants Dollar To Go Up

French Finance Minister Christine Lagarde said yesterday that she would like to see a strengthening of the US dollar and Chinese yuan versus the Euro. She said, “I would arm twist whoever is holding these strings to pull the dollar up. I would like to do that for the yuan as well.”

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