Euro hovers above lows in thin trading
- Mixed US economic data was revealed on Thursday showing Initial Jobless Claims decreased to 420K in line with expectations and New Home Sales rose to 290K but lower than expected. Data also showed Durable Goods orders fell more than expected by 1.3% in November and ex. Transportation Durable Goods increased by 2.4% beating expectations of a 1.7% rise. US Consumer Confidence also rose as expected in December
- The euro struggles to remain steady in extremely thin and choppy market conditions a day before Christmas after it bounced from a three-week low against the US dollar. The pair is trading around 1.3130 today after it slid to a fresh new low at 1.3054 on Thursday but it still remains fragile as euro zone debt crisis is speculated to deepen further in 2011. Against the Swiss franc, the euro edged higher on Friday currently trading at 1.2586 up from a record low of 1.2438 hit on Wednesday. Portugal's sovereign debt was downgraded to A+ from AA- on Thursday by rating agency Fitch putting further pressure on the euro.
- Against the Japanese Yen, the euro continues to be under pressure after it fell near a three week low on Thursday at 108.45 and today is trading around 108.9 yen.
- The Australian dollar rallied versus the US dollar on Friday as stocks reached record high levels and the heightened risk appetite raised demand for the high-yielding Aussie. Australia's positive economic outlook and higher commodity prices also triggered demand for the Aussie that pushed it above parity level.
Currency to watch out for: EURUSD & USDJPY
- § The EURUSD pivot point is at 1.3150 with a preference to enter into Short positions at 1.315
- § The USDJPY pivot point is at 82.85 with a preference to enter Long positions at 82.85
Today's calendar and market movers:
- § No economic calendar
US equities were mixed on Thursday with the S&P500 up 0.16% and the DJIA down 0.12%. The European bourses were also mixed with the FTSE trading up 0.21% the DAX and the CAC trading down 0.14% and 0.21% respectively. The NIKKEI and the HSI at the time of writing is trading down 0.65% and -0.30% respectively.