U.S. markets open with gains after Housing, and CPI data; Dollar trimming gains

By IBTimes Staff Reporter | December 16 2009 10:53 AM

FXstreet.com (Barcelona) - U.S. markets have opened Wednesday's session with moderate gains, after figures from CPI and Housing Starts data confirmed market expectations. In FX markets, Euro and Pound are picking up from Tuesday's lows.

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Dow Jones Indstrials Index advances 0.45%, while the Nasdaq Index adds 0.55% and the S&P Index trades 0.6% up one hour after the opening bell.

In the macroeconomic domain, USD CPI has increased at a 0.4% pace in November, following a 0.3% in October, due to higher energy, which have increased 1.5%. Excluding food and energy, consumer prices remained unchanged.

Furthermore, U.S. housing starts have increased 8.9% and building permits rose 6.0%in November, beating market expectations and offsetting large declines posted in October.

Dollar trimming yesterday's gains

GBP/USD rally from session lows at 1.6230 during European trade, reached 1.6375 resistance area, the top of the last 5 days trading range, which is being tested at the moment, with the pair trading at 1.6380 after having hit an intra-day high at 1.6390.

EUR/USD recovery from session low at 1.4510 has extended to 1.4585 resistance level, and, after hitting 1.4590 session high, pair has eased to to levels around 1.4575 at the moment of writing; 0.28% above its day opening level.

USD/JPY recovery from 88.30 low on Monday was capped yesterday at 89.95, and the pair has remained consolidating at levels between 89.35 and 89.85 ever since.

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