FX Markets Quiet Ahead Of The Christmas Holiday

Daily Forex Fundamentals | Written by AC-Markets | Dec 23 08 01:09 GMT |

Market Brief The dollar was stronger against most of the G10 on light trading volume, which is typical prior to a major holiday. The EurUsd rose 30pips to the mid 1.39 level, while the UsdJpy picked up 10pips to the low 90 price area. The GbpUsd dropped 95pips to low range of 1.48, probably due in part mostly to heightened volatility. Bond yields gave up little ground in terms of prices, as treasury yields remain extremely tight. Eurobond yields dropped across the board, with the French and German 10yr down 7bps. Equity markets closed lower in the US, with the Dow down 59pts and the SPX off 16pts. Commodities displayed a decent amount of price activity, with oil back below $40bbl to $39bbl and gold up higher at $846oz. There was no data out of the Eurozone or UK, the Belgian govt. announced their resignation on the back of the failed Fortis rescue plan. This news did very little to move the Euro, ECB President Trichet is scheduled to speak tomorrow. Traders will be watching UK GDP, which is expected to come in negative on a quarterly basis. A negative GDP figure will support additional easing by the BoE in Q1 2009, much of which is priced into the market. ACM FOREX Disclaimer: This report has been prepared by AC Markets (thereof ACM) and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Salesperson or Traders of ACM at any given time. ACM is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.