Forex News – Strong Earnings and News of Debt Compromise Deal Overshadow Worse than Expected Existing Home Sales

Mixed feelings dominated financial markets on Wednesday, where investors were hopeful that U.S. lawmakers will reach a compromise deal to raise the debt ceiling before an August 2, deadline set by the Treasury Department, in addition to more bright financial results from U.S. companies, as the earnings season is proving to be a strong one so far, while worse than expected data from the United States put negative pressure on confidence, where existing home sales fell below expectations in June.

The existing home sales index was released for the month of June, where sales of previously owned homes fell 0.8% to an annual rate of 4.77 million units, compared with the prior estimate of 4.81 million units, and below median estimates of 4.90 million units.

Stocks in theUnited Stateswere mixed by opening on Wednesday, where the Dow Jones Industrial Average was down by nearly 0.10% to trade around 12,576, while the S&P 500 index was up by nearly 0.06% to trade around 1328. European stock indexes were also mixed before closing on Wednesday amid optimism ahead of a meeting between Angela Merkel and Nicolas Sarkouzi, where FTSE 100 was up by nearly 0.60% to trade at 5826 and the DAX was lower by nearly 0.10% to trade around 7185.

The U.S. dollar declined against a basket of major currencies on Wednesday, where the U.S. dollar index was trading at 74.94, compared with the opening level at 75.16. The Euro rose against the Dollar, where the EUR/USD pair traded at $1.4197, compared with the opening level at $1.4170, and the British Pound was little changed against the Dollar, where the GBP/USD pair traded around the opening level at $1.6126.

Gold prices were little changed on Wednesday after falling on Tuesday from a new record high at $1609.92 an ounce, where gold was trading around $1590 an ounce, and crude oil prices slightly rose to trade around $98 a barrel after the EIA report showed that crude oil inventories fell last week below expectations.

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