Euro rises in thin trading conditions
- The euro edged higher on Monday's thin trading conditions supported by Asian demand and expectations that China will help the euro zone and buy a significant amount of Portugal's sovereign debt. The euro climbed over the 1.31 level against the US dollar on Monday rising as high as 1.3158 from 1.3113 dollars.
- The Australian dollar plummeted today after China raised the country's interest rates by 25 basis points during the Christmas weekend in an effort to stop prices from rising. Australia's economy is expected to be hurt by China's monetary tightening and prudent measures can affect China's demand for commodities. The Aussie slid to 0.9992 versus the dollar after the news from 1.0049 but then recovered losses in an end of year low-liquid and choppy to trade above parity at 1.0055.
- Against the Japanese Yen, the US dollar declined to a two-week low at 82.64 from 82.97 after data showed Japan's Housing Starts rose more than expected in November. The greenback appears weak in the last two weeks as it failed to break above the 85.00 level against the Japanese Yen.
- Gold slid after the rate hike in China falling to 1372.40 an ounce but the precious metal quickly recovered losses to rise as high as 1386.12 an ounce.
Currency to watch out for: EURUSD & USDJPY
- § The EURUSD pivot point is at 1.3150 with a preference to enter into Short positions at 1.3150
- § The USDJPY pivot point is at 83.00 with a preference to enter Short positions at 83.00
Today's calendar and market movers:
- § Japan's National Consumer Price Index is forecasted to fall0.1%
- § Japan's Industrial Production MoM is forecasted to gain 0.9%
US equities were mixed on Friday with the S&P500 down 0.16% and the DJIA up 0.12%. The European bourses were mixed as well with the FTSE trading up 0.21% and the DAX and the CAC trading down 0.14% and 0.28% respectively. The NIKKEI and the HSI at the time of writing are trading up 0.75% and down 0.30% respectively.
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