GO Markets Forex Team
GO Markets
The US dollar’s continue to climb higher overnight in what appears to be residual support from this week’s rate hike. The Aussie’s testing 71-figure, the Euro’s stabilised around 108.30 but the Canadian dollar just keeps on drowning with the USDCAD pair rising to fresh 11-year highs.
Overnight we saw reasonable volumes ticking over, however things are clearing winding down as we head into Christmas. Judging by the casual attire of employees of some of the funds and banks spilling out of 120 Collins, many have already checked-out for Christmas holidays. Well perhaps we may see trading volume considerably lower, but it doesn’t necessarily mean less volatility.
Nonetheless, the weeks not over and CAD traders will be watching consumer price data this evening local time, which is expected to show inflation back on the boil on a yearly basis given extremely low oil prices have dropped out of the year to year price comparisons.
After that we’ll look to the US services PMI for a bit of direction. After the solid run on the US dollar since the FOMC decision, it wouldn’t be unreasonable to expect a little bit of consolidation.
Coming up at 1400 AEST is the Bank of Japan monetary policy statement. While the BoJ are unlikely to unveil any new easing initiatives, markets will be interested in what could be on their 2016 agenda.
More to come from Adam Taylor on the CAD and JPY a little later.
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