[B]Market Review[/B] - 01/01/2014 [I]02:37GMT [/I]
[B]Dollar ends mixed on last trading day in 2013[/B]
The dollar traded mixed against major currencies in subdued holiday trade on Tuesday, as market sentiment improved ahead of the year end although the greenback remained supported on dips.
Earlier in Asia, the single currency retreated after meeting renewed selling interest at 1.3812 and price dropped to 1.3760 in European morning. Later, despite a brief bounce to 1.3794, release of better-than-expected consumer confidence data in New York morning pressured euro and price weakened to sessn lows of 1.3740 near New Yok close
U.S. consumer confidence improved to 78.1 in December from 72.0 in November, beating consensus forecasts for a 76.0 reading.
Versus the Japanese yen, U.S. dollar traded in a choppy fashion near Monday’s 5-year peak at 105.41 on Tuesday. Despite an initial drop from Australian high of 105.15 to 104.86 in Asian trading, the pair found support in New York trading as robust U.S. consumer confidence data sparked demand for the greenback amid hopes for U.S. recovery to gain steam in 2014. Dollar later rose to a fresh intra-day high of 105.36 near New York close.
Although cable remained under pressure in tandem with euro in Asia and fell to 1.6475, active cross-buying of sterling versus euro gave support to the pair and British pound later ratcheted higher above last Friday’s 2-year peak at 1.6578 to 1.6580 in New York afternoon before easing.
On the data front, U.K. Lloyds Business Barometer dropped to 48 in December from 50 in previous month. U.S. S&P/Case-Shiller home price index in October came in at 1.05% m/m and 13.61% y/y, better than the forecast of 0.95% and 13.45% respectively.
[B]Data to be released on Wednesday: [/B]
China manufacturing PMI on Wednesday. New Zealand, Australia, Japan, Hong Kong, China, Switzerland, Germany, France, U.K., U.S., Canada financial markets closed due to public holiday.