Rational FX: 1.6% drop in US Consumer Confidence [29/12/2010]
0 Comments
Over the festive period currency markets have been locked in tight ranges with the severe bad weather coupled with many Bank Holidays falling during the working week – this has prompted more people to not come into work and has resulted in thin trading.
Below are the main points, however we feel that they are currently of little relevance as mentioned previously there is very thin trading. We are more likely to see traders close positions and move funds into safe haven currencies until the New Year.
Yesterday’s Market Movers
- Yesterday we had United States Consumer Confidence drop from 54.1 to 52.5. The Conference Board gave a negative outlook of the confidence conditions. We saw GBP/USD and EUR/USD stopped their loss after the data released.
Today’s Market Movers
- Today we will have Germany CPI with the expectation of a 0.2% increase MoM. YoY is predicted to remain unchanged at 1.5%. Euro might see some consolidation if the data is coming out as expected. Given the fact that the EU economists are still looking for ‘a flexible fiscal mechanism’ for the debt crisis, the market overall is pessimistic.
- In the U.S. Federal Reserve is going to add new members into the Federal Open Market Committee (FOMC). This will affect the economic policy decision making in the States next year. At the moment, the Fed is attempting to follow the QE II plans and is predicted to keep the interest rate near zero.
- As we are approaching the new year, analysts are expecting movements on the market. However, the weak consumer confidence and housing market in the country would not help the Dollar as much as expected. Since 1980, US Dollar normally has good performance in January, this might be a psychological support for the Dollar
|
Currencies
|
High
|
Low
|
Support
|
Resistance
|
|
GBP/EUR
|
1.1726
|
1.1644
|
1.1660
|
1.1760
|
|
GBP/USD
|
1.5505
|
1.5354
|
1.5480
|
1.5340
|
|
EUR/USD
|
1.3268
|
1.3184
|
1.3020
|
1.3200
|
We wish you a very nice day.
