European Session – Dollar mixed but on track for yearly gains
December 31, 2013 2:16 pm
The most noticeable move was made by the pound which gained against the dollar during a relatively quiet European session on the last day of the year. The dollar was broadly weaker especially against the yen but is on track to end the year with the best annual percentage gain versus the yen since 1979. The euro eased slightly but is surprisingly set to end the year as the best-performing major currency in 2013.
Overall market sentiment was upbeat and European equities are expected to set their best annual performance since 2009.
Holiday-thinned trading volumes led to exaggerated moves, resulting in sterling gaining 0.31% to 1.6532. The pound has been performing well recently due to strong UK data and some expectations for a Bank of England rate hike.
The euro retraced some losses from the Asian session but ended the European session down 0.07% at 1.3778. A lack of economic data from the Eurozone today meant the currency’s moves were driven mainly by year-end positioning. Lending support to the single currency were remarks from Mario Draghi who said on the weekend that there is no urgent need for rate cuts.
The dollar slipped 0.09% to 104.88 yen today as investors took the opportunity to book profits before the year-end after the pair hit a five-year high of 105.40 on Monday. Softer-than-expected US pending home sales yesterday also prompted some dollar selling.
Fed tapering that begins in January 2014 will provide more support for the dollar, while the yen is expected to weaken based on Bank of Japan policy easing.
Gold is back below 1200 a troy ounce and is on track for the biggest annual loss in over 30 years.
Chicago PMI and Conference Board Consumer Confidence data are due in the US session. Minimal moves are expected as most traders have closed their books for the year.
The most noticeable move was made by the pound which gained against the dollar during a relatively quiet European session on the last day of the year. The dollar was broadly weaker especially against the yen but is on track to end the year with the best annual percentage gain versus the yen since 1979. The euro eased slightly but is surprisingly set to end the year as the best-performing major currency in 2013.
Overall market sentiment was upbeat and European equities are expected to set their best annual performance since 2009.
Holiday-thinned trading volumes led to exaggerated moves, resulting in sterling gaining 0.31% to 1.6532. The pound has been performing well recently due to strong UK data and some expectations for a Bank of England rate hike.
The euro retraced some losses from the Asian session but ended the European session down 0.07% at 1.3778. A lack of economic data from the Eurozone today meant the currency’s moves were driven mainly by year-end positioning. Lending support to the single currency were remarks from Mario Draghi who said on the weekend that there is no urgent need for rate cuts.
The dollar slipped 0.09% to 104.88 yen today as investors took the opportunity to book profits before the year-end after the pair hit a five-year high of 105.40 on Monday. Softer-than-expected US pending home sales yesterday also prompted some dollar selling.
Fed tapering that begins in January 2014 will provide more support for the dollar, while the yen is expected to weaken based on Bank of Japan policy easing.
Gold is back below 1200 a troy ounce and is on track for the biggest annual loss in over 30 years.
Chicago PMI and Conference Board Consumer Confidence data are due in the US session. Minimal moves are expected as most traders have closed their books for the year.
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