There was a rare calm in currency markets again last night.
Overview
The Dollar is mostly unchanged against its G10 rivals, but there were some notable moves in individual pairs.The dollar has seen a little juice in early trading after data showed bright signs for the economy. The third and final revision of third-quarter GDP, personal consumption, and core PCE all beat expectations. Continuing jobless claims also came down a touch. Today’s data could add to the argument that the Fed can continue its hawkish stance towards future policy, giving the greenback a lift. The Kansas City Fed Manufacturing Index is due out at 11 a.m. and is likely to be a non-event.
What to Watch Today…
- No major economic events are scheduled for today
- Holiday Hours: Dec 23, Dec 30: 8:30a to 3p EST; Dec 26, Jan 2: CLOSED
- Monex USA Online is always open
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GBP ⇓
The British pound was stronger against the dollar most of the night but is under pressure to start our session following disappointing data released in the U.K. British gross domestic product fell 0.3%, worse than the 0.2% contraction forecast by economists. Adding insult to injury, U.K. household incomes fell for a fourth straight quarter. GBP/USD is down 0.42% from yesterday’s close
JPY ⇓
The Japanese yen continues to see heightened volatility as USD/JPY tries to find new ranges. The yen rallied over 4% earlier this week following a hawkish surprise from the Bank of Japan and has traded in wide ranges in the days following. The yen initially rallied half a percent overnight but has since given back all of its gains in about 30 minutes. Regardless, the yen is set for its largest weekly gain since August. .
