The buck was lower against most of the majors in NY trading as poor economic data, lower stocks and some big technical breaks saw the greenback sink. The S&P 500 fell about -0.5% and this was helped by a weak US November construction spending report and horrid motor vehicle sales for December. EUR/USD added more than 50 points and was sitting near 1.3610/20 as the session was coming to a close. Look for 1.3650 as the next barrier to upside here. The move in GBP/USD was more impressive as Cable jumped more than 200 pips towards the 1.4710/20 zone.
Crude oil prices jumped nearly 5% on the day as the only thing holding back the move was the critical $50/bbl barrier. Geopolitical tensions still look to be behind the recent surge as Israel moves deeper into Gaza. This led to an absolute plunged in USD/CAD which sank more than -230 pips in NY and was sitting near the 1.1870 intraday lows minutes before the close. The 1.20 break looks to have been major from a technical standpoint as well and we would reckon that a move back above that level would elicit some good buying here.
Upcoming Economic Data Releases (Asia Session) previous forecast
1/5 23:50 GMT JN Monetary Base (YoY) DEC 1.90% - -
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