USD Trading Outlook
U.S. Dollar Trading (USD) stocks dipped in Asia and in Europe as risk aversion crept higher on European banking fears. The US session saw some stabilization and recovery in stocks into the close. The USD did not reverse gains against the Euro however with sentiment towards single currency extremely negative at the moment and the EUR/USD caught in a strong downtrend. In US stocks, DJIA +3 points closing at 12415, S&P +3 points closing at 1280 and NASDAQ +10 points closing at 2669. Looking ahead, December NonFarm Payrolls forecast at 150k vs. 130k previously. The unemployment rate is expected to tick higher to 8.7% vs. 8.6 previously.
U.S. Dollar Trading (USD) was strong on the back of renewed risk aversion in the Euro area banking sector overnight. Stock markets still managed small gains as economic data supported with factory orders gaining 1.8% vs. 1.7% previously. In US stocks, DJIA +21 points closing at 12418, S&P +1 points closing at 1277 and NASDAQ -1 points closing at 2648. Looking ahead, ISM Services PMI forecast at 53 vs. 52 previously. Weekly Jobless Claims are forecast at 375k vs. 381k previously.
U.S. Dollar Trading (USD) the Dollar was sold in all sessions yesterday as Global stock markets rallied and economic data improved. December ISM Manufacturing jumped to 53.9 vs. 52.7 previously. The FOMC Minutes were also released and continued to support the view interest rates would be kept low until 2013. In US stocks, DJIA +179 points closing at 12397, S&P +19 points closing at 1219 and NASDAQ +43 points closing at 2648. Looking ahead, November Factory Orders forecast at 1.7% vs. -0.4% previously.
U.S. Dollar Trading (USD) even though FX markets were open the important London markets were closed and many stocks markets remained closed. Better than expected Chinese PMI released on Monday saw December PMI upgraded to 50.3 above the 50 expansion level and has helped improve risk appetite. Looking ahead, FOMC Minutes Released and December PMI Manufacturing forecast at 53.2 vs. 52.7 previously.
The US dollar lost ground on Friday against a basket of currencies in thin trade. Optimism that the US economy is improving was boosted after economic data showed Pending Home Sales, Consumer Confidence, Housing Starts, Building Permits and Existing Home Sales rose more than expected. Versus the Japanese yen, the greenback dipped to 76.79 from 77.73, a decline of 1.2%.
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