Major currencies closed the session in New York yesterday with losses against the U.S. dollar, where after the European Central Bank offered more than expected liquidity to the euro-area banks, the sentiment deteriorated on speculation the debt crisis is worsening and the financial sector is hurt significantly from the two-year crisis.
However, today the sentiment is mixed as investors are still assessing the European Central Bank move, where the ECB when offered unlimited liquidity to banks attempted to prevent an interbank lending freeze from hurting the banking industry and in a way or another this move is good and will buy Europe some more time to finalize the plan to fight the debt crisis, which in result supported markets to correct the losses seen in the past session.
The euro benefited slightly today as the U.S. dollar lost momentum on better risk appetite, where the sentiment improved in the market after the United Kingdom GDP figures was revised higher in the final reading for the third quarter, where the GDP index confirmed that the U.K. grew 0.6% in the third quarter.
The EUR/USD opened the session today at $1.3044, and recorded the highest at $1.3118 and the lowest at $1.3033 and is currently trading around $1.3074.
The U.S. dollar index (USDIX) started the day at 79.97 and set the highest at 80.05 and the lowest at 79.64, and is currently trading around 79.85.
The sterling pound also gained momentum today against the U.S. dollar after the cheerful growth figures, where the GBP/USD pair opened the session today in Asia at $1.5671 and recorded the highest at $1.5727 and the lowest at $1.5654, and is currently trading around $1.5707.
The United States, the world's largest economy, is to release the gross domestic product third reading, with expectations the index could have remained unrevised at 2.0%, while the personal consumption could be steady at 2.3% in the third quarter.
Finally, volatility and heavy fluctuations are expected as the Christmas holiday is at the doors, where we expect the sentiment to remain shaky and markets to move slightly today ahead of the Italian vote later on the day.