Dollar broadly weaker on the upcoming US home sales data

"Dollar turns lower against its major rivals"

The recent release of the economic data on Wednesday of the upcoming US Home Sales came pretty lower than the forecasted number, turning the mighty dollar lower against its major rivals. On the contrary, the latest Brexit news of referendum has shaken the sentiment of the many investors creating high volatility in the market.

Since the pending home sales data came as 3.7% lower than the last month we can expect the decline of 1.1% . According to the "US commerce department", the pending home sales increased by 0.4% than the last month which resulted in  a total cumulative increase of 1.1% than the previously reported data. This spectacular increase of data created a second thought in the mind of "investor" regarding the strength of mighty dollar since the data beat the result of the last seven-year increment. Along with the pending home, there is there is decent rise in the personal income which is 0.2%.

The Great Britain Pound is also facing huge pressure due to the Brexit news and investor is in fear that the global economic growth of the country will be greatly affected by this major decision. However, the EU leaders are overly concerned with the huge impact of Brexit for which they are elaborately discussing the preventive measure to mitigate the economic effect in the "Summit in Brussels" on Wednesday.

The overall economic condition helped the EURUSD pair to gain 0.42% to 1.1112 in Friday’s trading session. On the contrary, the USDJPY pair fell by 0.18% to 102.59 after testing the low at 99.15 on Friday session. The Yen investors are cautiously waiting for the Japans next action since there is high chance of strengthening the Japanese monetary policy which will eventually erase all the gain of US dollar against the Japanese Yen.

The highly correlated pair AUDUSD and NZDUSD gain strength against the mighty dollar followed by an increment of 0.85% at 0.7448 in AUDUSD pair and 1.14% to 0.7128 in the NZD/USD pair. Even the mighty "dollar index" fell by 0.49% at 95.72 targeting the low of June 24.

The overall situation is "dovish" for the green buck and investors are not yet ready to fuel the dollar up again to its former glory. But if the referendum happens regarding the "Brexit" decision then we can surely see some indecision in the market strength of US dollar followed by the Great Britain Pound. But so far the pound has secured a way to keep sliding downward to historic low even though the dollar is broadly weak. On the other hand, Japanese prime minister has given his valuable opinion to initiate a new policy to attain "economic stability" in the financial sector of every country. Since the pending home sales came negative than the expectation which acts as the leading indicator for the economic growth of the country there is the possibility of mass chaos in the market due to the massive  downfalls of the great US and Great Britain Economy. Investors prefer to be in the safe zone until the dust settles down in the market with better economic stability.