What's Happened:

The dollar has rallied for the last three days, but we finally saw the currencies rebound a bit yesterday when the awful housing data hit the news.

What I Say:

This miserable housing data once again reminded the dolts that want to forget we have this albatross around our necks, that the fundamentals here are awful!

That housing data came in two pieces. First we had the Existing Home Sales for June, which fell 2.6% from May, according to the National Association of Realtors.

The median home price was US$215,100 in June, down 6.1% from US$229,000 in June 2007. The median price in May this year was US$207,900.

So, looking at that median home price, it blipped up in June from May 215,000 vs. 207,900. Now, that doesn't make sense, but that could be the reason existing homes fell so hard! We only began keeping score of this data in 1999, but this report represents an all-time low for the data series... How low can you go? Limbo rock!

The second piece of the awful Housing data was the foreclosures data... U.S. foreclosure filings more than doubled in the second quarter from a year earlier. Basically falling home prices left borrowers owing more on mortgages than their properties were worth.

One in every 171 households was foreclosed on. Each of these former homeowners received a default notice or was warned of a pending auction.

That was an increase of 121% from a year earlier, and 14% from May! Ouch! Stay tuned...it looks to get uglier from here.