Dollar falls on higher US Treasury prices

  • The US dollar appears weaker today after failing to break through last week's highs weighed by a pause in US Treasury yields rally. On Thursday, data showed US Jobless Claims decreased by 3K last week and December US Manufacturing climbed more than the market anticipated further justifying a US economic recovery.
  • The euro edged higher on Friday's currency markets a day after the EU policymakers meeting to discuss euro zone debt crisis. EU leaders agreed that a permanent mechanism is needed to prevent a euro zone debt contagion and in addition they voted to double ECB's capital. The single currency rose as high as 1.3326 against the dollar from 1.3181 hit on Thursday.
  • Gold rose today helped by a weaker dollar and continuing fiscal uncertainty in the euro zone that caused a rising demand for the safe haven metal. The precious metal climbed to 1377.73 an ounce.
  • The Aussie edged higher on Friday versus the greenback helped by upbeat data confirming that the US economy is healing and a rise in commodity prices. AUD/USD hit a high at 0.9926 dollars

Currency to watch out for: EURUSD & USDJPY

  • § The EURUSD pivot point is at 1.3225 with a preference to enter into Long positions at 1.3235
  • § The USDJPY pivot point is at 83.70 with a preference to enter Long positions at 83.75

Today's calendar and market movers:

  • § Germany's IFO Business Climate is forecasted at 109
  • § Europe's Trade Balance is forecasted at 2.9B
  • § US November Leading Indicators is expected at 1.1%

Equity Markets:

US equities closed positive on Thursday with the S&P500 up at 0.62% and the DJIA up at 0.36%. The European bourses traded down with the FTSE traded at -0.02% the DAX and the CAC traded down 0.11% and 0.21% respectively. The NIKKEI and the HSI at the time of writing is trading at -0.07% and -0.03% respectively.