Tuesday, August 28, 2007

FX Quiet, Carry Trades Pick Up Slowly

Major currency pairs were trading quietly on Monday as UK financial market was closed for summer bank holiday.

The dollar remained weak against the euro and sterling after a weaker-than-expected US housing report, adding to the worries over the nation’s housing sector. The existing home sales declined 0.2% to an annual rate of 5.75 million units in July, the slowest pace in two years.

The euro drifted in a narrow range between 1.3640 and 1.3680 versus the dollar, while the sterling approached 2.02 against the dollar.

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