Euro steadied ahead of the EU summit

  • The dollar paused its rally on Thursday as US Treasury prices edged higher. On Wednesday, the US dollar rose against a basket of currencies supported by rising US Treasury yields. Jobless Claims and Manufacturing index are expected later today.
  • The euro appears steadied on Thursday's European trade after it plummeted on Wednesday weighed by rating agency Moody's which said it was considering downgrading Spain's sovereign debt. EU leaders are discussing a persistent debt crisis and possible methods to prevent a euro zone debt contagion in an end of year meeting on Thursday and Friday. The single currency is trading in a tight range between 1.3200-1.3233 versus the dollar well below a three week high of 1.3497 hit on Tuesday. The pair is currently trading at 1.3233 dollars.
  • Higher US Treasury yields pushed the dollar up to three-month highs versus the Japanese Yen on Wednesday hitting 84.50. USD/JPY is now trading at 84.22 yen. The Swiss franc fell on Thursday ahead of Switzerland's interest rate decision.

Currency to watch out for: EURUSD & USDJPY

  • § The EURUSD pivot point is at 1.3275 with a preference to enter into Short positions at 1.3265
  • § The USDJPY pivot point is at 83.90 with a preference to enter Long positions at 83.95


Today's calendar and market movers:

  • § Switzerland's Interest Rate decision
  • § UK Retail Sales in November is forecasted at 0.5%
  • § US Initial Jobless Claims is forecasted at 425K
  • § US Fed Manufacturing Index for December is forecasted at 14.1


Equity Markets:

US equities closed down on Wednesday with the S&P500 at -0.51% and the DJIA down at -0.17%. The European bourses traded down as well with the FTSE traded down -0.51% the DAX and the CAC down at -0.16% and -0.58% respectively. The NIKKEI and the HSI at the time of writing is trading at 0.01% and -0.58% respectively.