U.S fundamental data continues to surprise! 

  • The Dollar Traded in a 160 pip range yesterday with little movement seen in the markets overnight the Dollar finished roughly where it began against most pairs. Weekly Jobless Claims were strong at 421k vs. 435k forecast. In US stocks the DJIA traded -2 points lower closing at 11370 and the S&P traded +4 points higher closing at 1233. Looking ahead, November Trade Balance is forecast at -43.5bn vs. -44bn previously.

    The Euro (EUR) fell from day highs above 1.3300 after Ireland was downgraded by Fitch and Standard & Poors. The market slid below 1.3200 but when US stocks remained supported by strong data the Euro bounced back to the mid 1.3200 region. EUR/USD traded with a low of 1.3163 and a high of 1.3324 before closing at 1.3240. Looking ahead, November WPI is previously at -0.3%. 

Currency to watch out for: EURUSD & USDJPY

  • § The EURUSD pivot point is at 1.3200 with a preference to enter into Long positions at 1.3210
  • § The USDJPY pivot point is at 83.50 with a preference to enter Long positions at 83.55               

Today's calendar and market movers:

  • § United Kingdom PPI Output for November expected at 0.4%
  • § Canada Trade Balance for December expected at -43.5 bln
  • § United States Michigan Sentiment for December forecasted at 72.4
  • § United States Fed Budget for December forecasted at -129.8 bln 

Equity Markets: 

  • US equities closed mixed yesterday with the S&P500 up 0.38% and the DJIA down -0.02%. The European bourses were mixed with the FTSE traded positive 0.23% the DAX and the CAC closing down at -0.17% and up 0.68% respectively. The NIKKEI and the HSI at the time of writing is -0.72% and 0.38% respectively.