Forex traders were bracing for an action packed week with important Central Bank and Employment news on the horizon. Whoops, sorry, that is next weeks headline.
Forex traders were actually doing little to nothing this week, as traders appear to be waiting on the sidelines and ready to jump back into the Forex markets in 2010.
A recap of the numbers: EURUSD : 1.4385 (+ 25 pips) GBPUSD : 1.6004 (+57 pips) AUDUSD : 0.9157 (-9 pips) USDCAD : 1.0421 (-79 pips) EURJPY : 135.73 (+ 229 pips) GOLD : 1105 (+ $00.00) CRUDE OIL : 78.75 (+ $1.37) S&P 500 :1120 (-1.50 points)
So is there anything going on?
The short answer is HOLIDAY RETAIL SALES. Equities were stronger earlier in the day, and the dollar seemed to be losing last week's steam, as holiday sales appeared to be better than forecasted. However, the momentum fizzled quickly, and we continue to be close to last week's closing prices.
Looking ahead, trading may pick up tomorrow with the release of US Consumer Confidence numbers. Forex traders will be watching to see if sentiment has improved along with the improving jobs outlook.