Dollar slips on disappointing new-home sales data
The Dollar fell against most major currencies on Monday after February US New Home Sales data dropped to the lowest rate since June 2000, boosting expectations of a Federal Reserve interest rate cut. This apparent collapse in New Home Sales to only 848k in February, from 882k (revised down from 937k) in January and 1′047k in December, seems to suggest that the housing market has gone into free fall again. The data renewed some fears that weakness in the sub-prime mortgage market could undermine the broader housing market and other economic sectors. Market awaits Fed Chairman Ben Bernanke’ cong essional testimony on Wednesday.