mask Markets on Holiday Mode

22/ 12/ 2016

Markets on Holiday Mode

Daily Update

Yesterday's Market

  • EUR Consumer Confidence
  • GBP Public Sector Net Borrowing
  • USD Existing Home Sales

Yesterday Explained

During the European Session, The euro rebounded against the U.S. dollar yesterday.  The currency pair spent most of the day above 1.04 thanks to better than expected European data and U.S. dollar weakness. 

Eurozone consumer confidence dropped less than expected in the month of December. Furthermore, an official close to Greek negotiations was optimistic that Greece would be reaching a solution with creditors soon. Although this message has been seen before, the optimism offered a boost to EUR.

From the US session, as the holidays draw near, we have seen very little consistency in the performance of the U.S. dollar. The greenback lost value yesterday versus the euro, Japanese Yen and Swiss Franc but strengthened against sterling and the commodity currencies such as AUD and CAD.  Of course this isn't a surprise as overstretched moves ahead of a major holiday invites liquidation. 

However better than expected U.S. existing home sales report , and the Negative Public Sector Net Borrowing report from UK drew some buying interest for USD as the North American session progressed, resuming the profit taking for USD.

Today's Market

  • EUR Economic Bulletin
  • USD third quarter GDP, Initial jobless claims & Durable goods
  • USD Personal Income, Housing Price Index & Spending reports 

Today's Focus

The day will start with European Central Bank launching a new publication, the Economic Bulletin, to replace the ECB Monthly Bulletin. From US, We could see one final jolt of volatility with today’s revisions to third quarter GDP, initial jobless claims, durable goods, personal income and spending reports scheduled to release.

After that the markets will be on full holiday mode until Tuesday when we could expect some additional action before year end.