New homes sales in the US fell 11.5% last month, putting a damper on hopes that the housing market may be stabilizing. The bright spot in yesterday’s existing home sales was a drop in inventories. There is an inventory of almost 11 months in new homes.
Markets are paying more attention to prospects for the TARP package being passed. Credit pressures remain intense. Against this backdrop, EUR/JPY will likely keep EUR/USD better bid.
