After a long Christmas holiday, trading volumes are becoming thinner overnight with the year's trading nearly complete. Therefore, currencies are merely changed Tuesday. The dollar weakened a bit while euro and pound gained. The holiday mode is definitely on!
In fact, market movements are barely witnessed today, but among the traders who can't help but to linger in markets today were quite optimistic on signs the U.S economy will lead the global recovery after the New Year kicks off.
Residential real estate prices declined more than forecast October, a U.S Standard & Poor's/Case-Shiller home price indices showed earlier today, adding to signs the housing recovery is still within stressed levels.
The S&P/CS 20 city dropped 0.62 percent, after falling a revised 0.66 percent in October and S&P/CS Composite-20 edged down 3.40 percent from a 3.54 percent revised drop in the year ended October.
Obviously, the U.S housing markets is still weighed by rocket-high foreclosures and it will take a lot of time to work up a solid improvement such depressed stressed housing activities, however, late housing data suggest the sector that sparked the last recession is hopefully on the right track.
Gloomy housing data was overshadowed later on the day by an unexpected rally in consumer confidence in the U.S States as reported by the Conference board's latest Index of consumer sentiments for December, where the index bounced up to 64.5 from a revised 55.2, outclassing median estimate of 58.9.
Traders sought riskier assets following the confidence report, sending the dollar down against its peers Tuesday, as the US Dollar index fell faintly below the opening level of 79.84 to trade around $79.78 after recording the highest level at 79.88 while the lowest at 79.77.
Gold slipped for the fifth consecutive day, as the yellow shiny metal traded around $1591 an ounce since the opening level of $1602.69, while oil stretched its winning streak for the sixth consecutive day amid concerns of oil disruptions after Iran threatened to block Strait of Hormuz oil lane to west, driving oil contract to skip the $100 levels after opening at $99.75 a barrel.
Euro gained a almost a thin 0.1 percent versus the dollar Tuesday, sending the EUR/USD pair to trade around $1.3074 levels, after opening at levels of $1.3047 today, while the pair record a highest level at $1.3083 and a lowest at $1.3042.
The British Pound gained nearly 0.2 percent against the dollar, driving the GBP/USD pair to trade around $1.5668 from the opening price of $1.5626, while the pair record the highest level at $1.5704 and lowest at $1.5993.
Moreover, the greenback dropped nearly 0.15 percent against the Japanese Yen, sending the USD/JPY pair to trade around ¥77.83 from the opening level of ¥78.00 while registering a highest level at ¥78.02 and lowest at ¥77.79.