Forex Afternoon Wrap – 22/12

Dec 22 2015, 1:48 pm
forex afternoon Crude Oil

US third quarter GDP confirmed at 2.0%

  • UK Gfk consumer confidence 2 vs. 1
  • Swiss trade balance 2.14bn vs. 3.82bn
  • German import prices m/m -0.20% vs. 0.20%
  • Eurozone Gfk consumer climate 9.4 vs. 9.3
  • UK Public sector net borrowing 13.6bn vs. 11.9bn
  • US Final GDP q/q 2.0% vs. 1.90%
  • US GDP price index q/q 1.30% vs. 1.30%

Later

  • US HPI m/m
  • The US Existing home sales
  • US Richmond manufacturing index
  • New Zealand trade balance

The markets opened today with the Asian currencies posting a steady uptrend, despite the lack of any data on a weaker US Dollar. The Australian dollar is into a third consecutive day of gains as AUDUSD is trading near a 3-day high of 0.724 and up 0.77% for the day. The NZDUSD continues to outperform the commodity risk currencies, up 0.95% for the day and posting a 4-day high near 0.682 ahead of the trade balance data due later in the evening.

The Japanese Yen remains strong as the USDJPY is down -0.22% for the day. Prices were trading mostly flat with the resistance near 121.25 holding the rallies. Price action in USDJPY, however, remains range-bound and is trading above yesterday’s low of 120.845.

The European trading session saw the release of the Swiss trade balance which grew less than expected with 2.14 billion against estimates of 3.82 billion. The USDCHF is down -0.35% for the day after prices posted a 4-day low near 0.9876 before easing back higher.

The Euro remains strong in today’s trading with prices up 0.31% for the day EURUSD managed to break above yesterday’s high of 1.094 and is trading near the highs of 1.095 before easing back modestly. Data from Eurozone today included German import prices which fell -0.20% for the month, missing estimates of 0.20%. The Eurozone Gfk consumer climate was however modestly higher at 9.4 beating estimates of 9.3.

From the UK, the public sector net borrowing increased more than expected, rising to 13.6 billion above estimates of 11.9 billion. The GBPUSD is down -0.15% for the day with prices trading near a 3-day low of 1.486.

[Tweet “WTI Crude Oil is up 0.70% for the day. Prices are growing ahead of Crude oil inventories report”]

The New York trading session got underway with the final revision to the third quarter GDP estimates from the US. Against expectations of 1.90% revision, the third quarter GDP was revised to 2.0%, down from 2.10% from the second estimates but beating the dovish expectations of 1.90%. The US Dollar did not react much to the final GDP numbers, but Gold prices were seen declining on the news. Gold was trading near the intraday highs of 1080 before falling back and is down -0.28% for the day at the time of writing.

WTI Crude Oil is up 0.70% for the day as prices continue to edge higher ahead of tomorrow’s Crude oil inventories report. WTI Crude Oil was seen trading near $35.98 a barrel at the time of writing. The bullish moves in Crude Oil saw the Canadian dollar being supported as well with USDCAD down -0.15% for the day but prices remain supported above yesterday’s lows.

The remainder of the evening will see further US data which includes the House price index and existing home sales followed by the Richmond manufacturing index.

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John has over 8 years of experience specializing in the currency markets, tracking the macroeconomic and geopolitical developments shaping the financial markets. John applies a mix of fundamental and technical analysis and has a special interest in inter-market analysis and global politics.

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