European Session – Dollar rises after above-forecast US durable goods orders
December 24, 2013 1:54 pm
Markets were generally upbeat on Christmas Eve day though thin volumes kept moves small. European equity markets followed the risk-on Asian sentiment following a 6-year high in the Nikkei. The main driver of sentiment came from Wall Street overnight on the back of upbeat US data.
Currency markets were quiet although the main theme was dollar strength. There was little news flow from Europe as markets were closed in Germany, Italy and Switzerland and the UK closed early.
The euro was softer against the dollar in Europe, easing to 1.3671, down from the Asian session high of 1.3711.
The main data during the European session was from the British Bankers Association on mortgage approvals which rose more-than-expected, to their highest level since December 2009, signalling a stronger UK housing market.
Sterling rose against the dollar after the data, hitting a high of 1.6380 and gaining over 50 pips from the low of the day.
As the US session opened, focus was on the dollar and US data. Durable goods orders rose 3.5% compared to an estimate of 2% by Reuters.
The strong data boosted the dollar higher, as it jumped 70 pips against the yen to 104.32. However this was lower than the Nikkei-inspired push to 104.40 in the Asian session.
The next data in focus later in the North American session will be on new US home sales.
Markets will be closed for Christmas Day. The US opens on Boxing Day. Trading is expected to be quiet leading to the end of the year.
Markets were generally upbeat on Christmas Eve day though thin volumes kept moves small. European equity markets followed the risk-on Asian sentiment following a 6-year high in the Nikkei. The main driver of sentiment came from Wall Street overnight on the back of upbeat US data.
Currency markets were quiet although the main theme was dollar strength. There was little news flow from Europe as markets were closed in Germany, Italy and Switzerland and the UK closed early.
The euro was softer against the dollar in Europe, easing to 1.3671, down from the Asian session high of 1.3711.
The main data during the European session was from the British Bankers Association on mortgage approvals which rose more-than-expected, to their highest level since December 2009, signalling a stronger UK housing market.
Sterling rose against the dollar after the data, hitting a high of 1.6380 and gaining over 50 pips from the low of the day.
As the US session opened, focus was on the dollar and US data. Durable goods orders rose 3.5% compared to an estimate of 2% by Reuters.
The strong data boosted the dollar higher, as it jumped 70 pips against the yen to 104.32. However this was lower than the Nikkei-inspired push to 104.40 in the Asian session.
The next data in focus later in the North American session will be on new US home sales.
Markets will be closed for Christmas Day. The US opens on Boxing Day. Trading is expected to be quiet leading to the end of the year.
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