The laws of supply and demand seem to be still in force. Pending home sales jumped in August as prices continue their tumble and mortgage rates slipped. Much of the buying came in the hardest hit regions like California, Nevada and Florida.
All eyes are on equities as EUR/JPY swings dominate the market. Emerging markets are a close second as jitters remain high in those secondary markets. If they settle down, look for a lessening of risk aversion and a stronger EUR/JPY. The cross trades now at 137.30.
