Dollar pares some losses in early US session, lifted by stronger than expected core durable goods orders and jobless claim. While headline durable goods orders missed expectation by rising 0.2% in November, ex-transport orders were impressively strong by rising 2.0%. The data suggests that business are starting to respond to recovery in the economy by increasing investments. Initial jobless claims, on the other hand, dropped to 452k versus expectation of 470k.

BoJ governor Shirakawa reiterated that the bank is ready to act promptly and decisively if concerns about financial market volatility arise. BoJ minutes released today revealed that many members agreed the bank would maintain its stance of responding promptly to changes in the market situation. Also BoJ will adopt the most effective method for money-market operations that conformed to changes in financial markets. Recently, BoJ has also made it clear that it will not tolerate a year-on- year rate of change in the CPI equal to or below zero percent. Yen remains soft against as markets are speculating more quantitative easing measures from BoJ and yen would become the favorite funding currency in 2010 again.

While it will be market holiday in most places tomorrow, some important data will still be featured from Japan, including CPI and employment.

Happy holidays to our readers! We'll be back on Dec 28, Monday.

Economic Indicators Update

23:50JPYBoJ Meeting Minutes ---- 
13:30USDDurable Goods Orders Nov0.20%0.50%-0.60% 
13:30USDDurables Ex Transportation Nov2.00%1.00%-1.30% 
13:30USDInitial Jobless Claims (DEC 19)452K470K480K 
15:30USDNatural Gas Storage -171B-207B