• Home ::
• Fundamental ::
• Market View ::
• Daily U.S. Forex Summary

• Send
• Print
• Add To
• Rss

Daily U.S. Forex Summary

a63996f9-5bfe-4dc3-9712-56fbeafc45ea

0

0

The Canadian dollar remained in a tight trading pattern in holiday trading

Wed, Dec 24 2008, 10:08 GMT
by Union Bank of California Team

Union Bank of California

The US dollar traded weaker against a basket of currencies in holiday trading after data confirmed the US economy contracted in the 3rd quarter. A government report showed the economy shrank 0.5% between July and September that kept the greenback under pressure. Sales of new and existing homes data will be released later today but is expected to show more housing woes and investors are also preparing for a dismal consumer sentiment survey. Liquidity remains thin during the holiday season and market participants are seeing choppy price movement.

The euro traded slightly higher but almost 4% off its recent highs just a week ago. The euro zone showed some holding power as consumer spending in France rose more than expected.

The British pound fell against the dollar after the UK economy fell more than expected in the 3rd quarter. GDP fell 0.6% versus an expected 0.5% contraction. Market participants are expecting another negative 4th quarter in the UK as consumer and business spending continues to shrink.

The Japanese yen weakened against the dollar for the 3rd day after reports yesterday showed Toyota, the world’s 2nd largest auto manufacturer, reported its first loss in 70 years. Market participants are unwinding some of their yen positions as the world’s second largest economy is feeling the pain of the global slowdown in spending.

The Canadian dollar remained in a tight trading pattern in holiday trading. Market participants are looking at commodity prices and US data for direction.

Both the Australian dollar and the New Zealand dollar remained steady despite a report that the New Zealand economy fell 0.4%, the biggest contraction in 8 years.

The Mexican peso weakened against the US dollar in choppy trading as Mexico’s crude oil exports fell 17.3% YTD and a report that Mexico’s economy is expected to contract 0.1% next quarter on the heels of a severe US recession.

Published on  Wed, Dec 24 2008, 10:11 GMT