Daily Afternoon Report 25/11/2015
The euro fell to fresh seven-month lows against the U.S. dollar today, as strong U.S. data added to expectations that the Federal Reserve will raise interest rates next month, boosting demand for the greenback. The U.S. Commerce Department reported on Wednesday that new home sales rose by 10.7% to 495,000 units last month, compared to expectations for a gain of 6.0% to 500,000. The report came shortly after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending November 21 declined by 12,000 to 260,000 from the previous week’s revised total of 272,000.
Separately, the U.S. Commerce Department said that durable goods orders jumped by 3.0% last month, easily surpassing forecasts for 1.5%. Core durable goods orders, which exclude volatile transportation items, rose 0.5% in October, compared to expectations for an increase of 0.3%. Data also showed that U.S. personal spending inched up 0.1% last month, missing expectations for a 0.3% gain.