USD Finds Strength Into The Weekend

Daily Forex Fundamentals | Written by Easy Forex | Dec 22 08 01:31 GMT |

U.S. Dollar Trading (USD) was able to pare back weekly losses for the second day as the US Auto Industry was bailed out and commodities were under broad pressure led by Oil which settled below $34 for January contract. The market is turning its focus on the remaining $350 TARP bailout and Obama stimulus plan in the New Year. In U.S. share markets, the NASDAQ was up 11 points (0.77%) and the Dow Jones was down -25 points (-0.30%). Crude Oil closed down $2.35 ending the New York session at $33.87 per barrel. The Euro (EUR) dropped hard for the second day as the market was caught long on the tremendous up move seen earlier in the week. 1.4000 failed to support and the EURO eased below as ECB President Trichet opened up the door on future rate cuts in the Eurozone. Overall the EUR/USD traded with a low of 1.3825 and a high of 1.4310 before closing the day at 1.3885. Looking ahead, GFK Index is expected at 2.1 in January. Also released November Import Prices are expected to fall 2.6%m/m. The Japanese Yen (JPY) was very quiet on Friday as USD/JPY kept to a tight range. Some life was seen on the EUR/JPY which tracked its major lower but the market was in little mood to test key levels heading into the weekend. The Bank of Japan cut rates from 0.3% to 0.1% in a largely symbolic move whilst also announcing further stimulus measures. Overall the USDJPY traded with a low of 88. 43 and a high of 89.87 before closing the day around 89.45 in the New York session. UPDATE November Trade Balance -257Bn Yen vs. -223Bn Forecast. The Sterling (GBP) tracked the EURO lower but found support as some heavy EUR/GBP selling supported cable below 1.5000. December GFK consumer confidence showed a bounce to -33 vs. -39 expected as cheaper Oil and lower interest rates improved sentiment. Overall the GDP/USD traded with a low of 1.4814 and a high of 1.5170 before closing the day at 1.4856 in the New York session. The Australian Dollar (AUD) was sluggish failing to hold above .6900 during the day and easing back to test support at .6770 as the USD strengthened. Weak commodities are casting a shadow over the exporting nation as prices are expected to further deteriorate as the global downturn accelerates. Overall the AUD/USD traded with a low of 0.6769 and a high of 0.7932 before closing the US session at 0.6820. Gold (XAU) fell over 2% as commodities broadly weakened and the USD rallied on the Auto Bailout news. Overall trading with a low of USD$831 and high of USD$853 before ending the New York session at USD$838 an ounce. Easy Forex http://www.easy-forex.com Easy-Forex makes no recommendations as to the merits of any financial product referred to in this website, emails or its related websites and the information contained does not take into account your personal objectives, financial situation and needs. Therefore you should consider whether these products are appropriate in view of your objectives, financial situation and needs as well as considering the risks associated in dealing with those products