By CountingPips.com
U.S. Existing Homes sales increased more than expected and rose for the fourth month in a row in July according to the monthly report produced by the National Association of Realtors. The NAR report showed that existing-home sales including single family homes, co-ops and townhouses rose by 7.2 percent in July to a seasonally adjusted annual rate of 5.24 million 
units. The July data put existing home sales at four straight monthly gains for the first time since June 2004 and marked the largest monthly rise in ten years.
The sales pace surpassed economic forecasts that were predicting an approximate increase of 2.3 percent to a 5 million unit sales pace after June’s sales data had increased by 3.6 percent. On an annual basis, July’s existing-homes sales are 5 percent higher than the July 2008 sales pace.
Helping spur buyers into the market in July were a combination of low interest rates, a government tax credit for first time buyers and lower house prices as July’s median sales price is 15.1 percent lower than price level of July 2008.
NAR chief economist Lawrence Yun commented on July’s increase saying, “The housing market has decisively turned for the better. A combination of first-time buyers taking advantage of the housing stimulus tax credit and greatly improved affordability conditions are contributing to higher sales.”
The Northeast region led the sales pace in July with a 13.4 percent increase while the Midwest existing home sales rose by 10.9 percent and the South saw a 7.1 percent sales gain. On the negative side, the West’s existing home sales declined by 1.7 percent for the month.
US Dollar falls lower in Forex Trading as risk appetite flows.
The U.S. dollar has been mostly lower today against the other major currencies in the spot forex market as risk appetite has flourished today on the strength of the positive manufacturing data out of Europe and the better than expected US housing data. The dollar has been weaker versus the euro, British pound, Australian dollar, Canadian dollar, Swiss franc and New Zealand dollar while trading higher versus the Japanese yen.
The euro has advanced versus the dollar as the EUR/USD and reached past the 1.4370 threshold today before retreating to trading at 1.4327 at 12:47 pm after opening the day at 1.4225 at 00:00 GMT according to currency data from Oanda.
The British pound has risen today as the GBP/USD has advanced from its 1.6443 opening exchange rate to trading at 1.6497 usd per gbp.
The dollar has traded higher versus the Japanese yen today and the pair is trading at 94.49 after opening at the day at the 93.61 exchange rate.
The dollar is falling versus the Canadian loonie for the fourth day in a row as the USD/CAD trades at the exchange rate of 1.0821 after opening the day at 1.0932.
The dollar has also fallen against the Swiss franc as the USD/CHF trades at 1.0580 after opening at 1.0643 today.
The Australian and New Zealand dollars have both advanced higher today against the USD. The AUD/USD has climbed from its 0.8237 opening rate to trading at 0.8358 later this afternoon. The NZD/USD has increased from its 0.6733 opening to trading at 0.6833 later today.
USD/CAD Chart – The US Dollar declining today versus the Canadian Dollar for the fourth day in a row.
