The US Dollar was lower in European trading as investors reacted to poor pending Home Sales Data from the US. The weak homes sales data overshadowed the release of upbeat consumer spending figures.
Consumer Spending
A rise in consumer spending in the last few days of the year helped offset a sluggish beginning to the US holiday shopping season. According to industry research groups, the late surge in spending is looking likely to aid a large number of retailers surpass sales forecasts.
The National Retail Federation repotted that spending over the Thanksgiving weekend last month dropped 3.5 percent from the previous year. The surprise decline in consumer spending came despite a large leap in online sales.
US Pending Home Sales Data
Offsetting the boost in consumer spending was weak pending Home Sales Data from the US. In a report released by NAR (the National Association of Realtors), its pending home sales index dropped by a seasonally adjusted figure of 2.5% in November. The surprise decline missed expectations for a 0.5% increase. The pending home sales index fell from 110.0 to 107.3, the lowest level since January 2016. On a yearly basis, pending home sales fell at an annualized rate of 0.4% last month.
Dollar Lower
At time of writing, the US Dollar was down against most major currencies. The US Dollar Index, which measures the USD against a basket of six weighted currencies, was down 0.49%.
