US New Home Sales Fell To a 12-Year Low.

US new home sales fell to a 12-year low in December - sales decreased 4.7% to an annual pace of 604,000, the lowest since February 1995, from a 634,000 rate in November, and that is worse than expected. The average price last month dropped 10% compared to a year ago - the largest 12-month decline in 37 years. Housing analysts are saying that a bottom is yet to form.

US woes are good for traders who are bearish on the US dollar. EUR/USD rose today to around 1.4800. If it breaks successfully above 1.4830, it may next target 1.4860-70, then 1.4900-10. Swissy bears pushed the pair down after failing to break above 1.1000.

It's interesting to note the October 2007 average daily volume of forex trading in NY was $700.8 billion, a 31% increase from the previous year, according to the New York Fed, on behalf of the Foreign Exchange Joint Standing Committee. This includes transactions for spot, forward, swaps and OTC options.