Currency Updates:
U.S. Dollar Trading (USD) stocks finished unchanged in a lackluster session with little fresh news for traders to work with. Consumer Confidence picked up in December to 64.5 vs. 56 previously. October Case Shiller House prices fell -1.2% m/m though and this tempered some of positivity. Some concern emerged over threats from Iran to disrupt shipping in the Strait of Hormuz. Looking ahead, No data today
The Euro (EUR) range trading continued with little interest to move above 1.3100 or below 1.3000. Traders are waiting for Italian Bond Auctions later this week to see how demand fairs. EUR/CHF is holding above 1.2200 for now could edge higher if support continues to be found at the level.
The Japanese Yen (JPY) USD/JPY fell back to supports at Y78.80 with strong demand for the Yen across the board. EUR/JPY slipped back to Y101.6 but has support just below. The outlook is for more range trading around the Y78 level. UPDATE November Core CPI -0.2% y/y.
The Sterling (GBP) saw a sharp rally to 1.5700 going into Europe before paring back to 1.5650 and holding into the close. EUR/GBP finished under 0.8350 and is still trending lower but finding support. Stocks in the UK were closed so outside markets set direction yesterday. Stocks reopen today.
The Australian Dollar (AUD) kept to the same range as Monday with traders concerned about the Iran threat but positive about the US consumer confidence data. Stock markets will be closely watched this week with hopes still remaining of a year end rally.
Oil & Gold (XAU) Gold Broke below $1600 in a weak session for the precious metal which is struggling to hold onto gains in recent weeks. Oil surged above $100 on concerns Iran will block a major Shipping route if sanctioned.
