Raft of economic data stands to keep dollar trading brisk ahead of long weekend
December 21st - The run of dollar selling that was seen in recent weeks is clearly looking to be at an end, with consensus being that although an adjustment was required, the resulting move was somewhat overstated. The run of appreciation against the Yen, bouncing off lows around 115.50 has certainly brought some relief both at the Bank of Japan and on a wider level. A softer greenback clearly has the potential to damage economic recovery in Japan and indeed stocks of the major exporters - especially those to the US - have rallied in recent days on the back of this news.
However, the economic calendar remains somewhat thin and market liquidity is also continuing to ebb ahead of the Christmas break but US GDP data for
Q3 - due later in the session - may still provide additional direction. The dollar is also benefiting from the recent run of lower oil prices and assuming that the inventory data remains robust, look for support here - essentially coming through from the positive impact crude prices below $60 a barrel will have on the US trade deficit. Although traded volumes are now slipping, today's data, US personal income and spending due tomorrow and the Michigan sentiment due Friday should ensure that dollar traders at least have something to chew on in the days ahead.
Disclaimer: Although obtained from sources believed by us to be reliable, CMC Markets and its affiliates cannot guarantee the accuracy or completeness of the information upon which this commentary is based. This commentary does not purport to disclose the risks or benefits or entering into particular transactions and should not be construed as advice in any specific instance. The views in this report constitute our judgement as of this date and are subject to change without notice.
Fx-charts.com Disclaimer: The information contained on this website is subject to change without notice, views and opinions expressed on fx-charts.com may be those of individual authors and may not necessarily be the views of fx-charts.com or its officers and employees, we make no claim to the accuracy or timeliness of any information contained herein. We recommend obtaining advice from a suitably qualified financial advisor before entering into any financial transactions or agreements. The use of this website constitutes acceptance of our privacy policy, disclaimer and terms of use. This website is available for information and educational purposes only.
Need a forex broker? click on any of the buttons for more info!
