US dollar extends decline after poor pending home sales reading

The US dollar is at the lows of the day following the worst pending home sales report in three years. The 7.7% monthly drop in April highlights the sting of higher rates, particularly with Treasury yields jumping in the month.

The market is struggling to figure out where the US consumer is. We’ve seen falling US consumer confidence for most of the year but this week’s report was surprisingly strong. At the same time, large-ticket items are struggling and there is more talk of inventory piling up on auto lots.

Electronics are also struggling but that could also be due to heavy buying during the pandemic.

“The mix of
macro factors continued to create a challenging sales environment for
our category during the quarter and our sales were slightly softer than
our expectations,” Best Buy CEO Corie Barry said in today’s earnings release.

Most consumer-facing companies reported good earnings today, with the exception of Kohl’s, which is getting slammed down 25%. However others beat estimates, though none raised guidance for the year and there’s plenty of caution about Q2 in particular.

This article was written by Adam Button at www.forexlive.com.