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13 Dec 2014
US Session: Lower oil, stocks, yields & greenback drop
FXStreet (Guatemala) - The greenback has given back to its counterparts this week with the Yen as the top performer while the EUR, NZD and Pound followed in suit, in that order, and before the Aussie and the Loonie that were weighed on by oil and commodity markets.
Falling stocks dominated the session today in the US triggered by oil yet again. Long term yields were dropping out again and speculators trimmed long positions in the greenback to the lowest since October while the FOMC next week will be interesting given the markets indecisiveness in respect to 2015’s outcome. WTI for Jan dropped below $58/bbl again and investors nor analysts are not ready to pick a bottom yet. Gold fell to $1,222.50 an ounce.
EUR/USD started to tail back from the highs at 1.2484 after a strong uptrend took the EUR higher from the lows of 1.2385 before some supply came in on a very strong Michigan sentiment report. This took the dollar into the close ay 1.2457.
USD/JPY has been one to watch ahead of the Japanese elections starting this weekend. Today, the pair was climbing up and positioned on the bid for the most part after the drop from the earlier European crossover to the lows of 118.23 finishing 118.77.
USD/CAD has been in both supply and demand but robust on the 1.15 handle and most analysts would be suggesting a buy on dips scenario, even below the 1.15 handle, given the strong trend and fundamentals in oil. The price of oil is unsustainable and will affect the Canadian economy before a bottom is made and before buyers have a reason to get long again.
Key Data Events:
Producer Price Index (YoY) (Nov)
Reuters/Michigan Consumer Sentiment Index (Dec)Preliminar
Falling stocks dominated the session today in the US triggered by oil yet again. Long term yields were dropping out again and speculators trimmed long positions in the greenback to the lowest since October while the FOMC next week will be interesting given the markets indecisiveness in respect to 2015’s outcome. WTI for Jan dropped below $58/bbl again and investors nor analysts are not ready to pick a bottom yet. Gold fell to $1,222.50 an ounce.
EUR/USD started to tail back from the highs at 1.2484 after a strong uptrend took the EUR higher from the lows of 1.2385 before some supply came in on a very strong Michigan sentiment report. This took the dollar into the close ay 1.2457.
USD/JPY has been one to watch ahead of the Japanese elections starting this weekend. Today, the pair was climbing up and positioned on the bid for the most part after the drop from the earlier European crossover to the lows of 118.23 finishing 118.77.
USD/CAD has been in both supply and demand but robust on the 1.15 handle and most analysts would be suggesting a buy on dips scenario, even below the 1.15 handle, given the strong trend and fundamentals in oil. The price of oil is unsustainable and will affect the Canadian economy before a bottom is made and before buyers have a reason to get long again.
Key Data Events:
Producer Price Index (YoY) (Nov)
Reuters/Michigan Consumer Sentiment Index (Dec)Preliminar