[B]Market Review[/B] - 23/12/2013 [I]21:46GMT [/I]
[B]Euro moves moderately higher against the dollar in thin trading volume[/B]
The single currency edged moderately higher against the dollar on Monday after the release of tepid U.S. data as market participants locked in gains ahead of Christmas holiday after the greenback’s rally last week following the Federal Reserve’s decision to begin tapering its stimulus program in January.
During the day, euro rebounded after finding support at 1.3668 in New Zealand and price edged higher to 1.3695 in Asia before trading sideways in early European session. Later, euro jumped to 1.3717 in New York morning after release of a slew of U.S. economic data and then hovered around 1.3700 level for rest of the session.
U.S. personal spending rose 0.5% last month, in line with expectations, while personal income rose 0.2% in November, missing consensus forecast of a 0.5% increase. In a separate report, University of Michigan’s said its index of overall consumer sentiment held at 82.5 this month, unchanged from an initial estimate.
Versus the yen, dollar met selling interest at 104.10 in Asia and then traded with a soft bias in Europe. The pair extended losses from last Friday’s 2-year peak at 104.64 to 103.77 but cross-selling in yen on risk appetite lifted price in New York morning. Later, usd/jpy climbed back above 104.00 level to 104.12 before easing.
Although cable rebounded after meeting renewed buying interest at 1.6324 in Australia and then ratcheted higher to 1.6375 in European morning, active cross-selling of sterling versus euro pressured price lower to 1.6329 in New York morning before recovering to 1.6366.
In other news, Dallas Federal Reserve President Richard Fisher said on Monday that the U.S. central bank had taken an important psychological step when it announced a reduction in bond buying at its policy meeting last week, but he favored even bolder action.
[B]Data to be release on Tuesday: [/B]
France GDP, U.K. BBA mortgage approvals, U.S. durable goods, Redbook retail sales, house price index and New home sales.