19 Dec 2014
US session recap: USD index and stocks rally for record highs
FXStreet (Guatemala) - The final session of the week was dominated by dollar strength yet again and the consolidation of that as we wind down towards the holidays next week with less liquidity throughout markets. The dollar index climbed to make fresh highs 11527 and then eased back slightly.
Oil rallied from $57 bucks up to $58.43 while Baker Hughes US oil rig count drops to 1875 from 1893 and Saudi Arabia’s oil minister, Ali Al-Naimi, said yesterday that a slump in prices was temporary. Gold was supported at around $1,194 and traded between here and $1,201.65. The S&P was set for a new all time high of 2082.4.
There was a lack of data besides the Canadian CPI’s missing expectations in early trade, but there were a number of comments from Fed speakers. Plosser, the usual hawk, was suggesting the US economy is not in need of extraordinary accommodation. Lacker speaking at an event explained that inflation is heading to their 2% target and it is “highly likely” that rates will go up next year. Williams, in fact, when speaking on Bloomberg radio, sights inflation well above 2% next year.
GBP/USD was caught between euro weakness and dollar strength. The pair dropped from 1.5680 for a second time over the past couple of sessions and found its footing on the handle for low of 1.5605 before moving into a drift to recover 50% of the drop at 1.5640.
EUR/USD was moving to the downside with very little interest on the right hand side of the quote. The pair was falling from 1.23 in a few bouts of supply until making a bottom on the 1.2220 support and 200 month MA.
USD/JPY was dragging the dollar higher across the majors and made session highs before tailing off into a sideways drift and into a 20-pip range.
USD/CAD was a strange event around the release of CPI with a pre-rally before the “official” release. The pair was then cashed in on the offer at 1.1635 and choppy within a 30-40 pip range and generally traded with a soft tone closing down on the day and week. Canadian CPI at 2% missed 2.2% expectations.
Oil rallied from $57 bucks up to $58.43 while Baker Hughes US oil rig count drops to 1875 from 1893 and Saudi Arabia’s oil minister, Ali Al-Naimi, said yesterday that a slump in prices was temporary. Gold was supported at around $1,194 and traded between here and $1,201.65. The S&P was set for a new all time high of 2082.4.
There was a lack of data besides the Canadian CPI’s missing expectations in early trade, but there were a number of comments from Fed speakers. Plosser, the usual hawk, was suggesting the US economy is not in need of extraordinary accommodation. Lacker speaking at an event explained that inflation is heading to their 2% target and it is “highly likely” that rates will go up next year. Williams, in fact, when speaking on Bloomberg radio, sights inflation well above 2% next year.
GBP/USD was caught between euro weakness and dollar strength. The pair dropped from 1.5680 for a second time over the past couple of sessions and found its footing on the handle for low of 1.5605 before moving into a drift to recover 50% of the drop at 1.5640.
EUR/USD was moving to the downside with very little interest on the right hand side of the quote. The pair was falling from 1.23 in a few bouts of supply until making a bottom on the 1.2220 support and 200 month MA.
USD/JPY was dragging the dollar higher across the majors and made session highs before tailing off into a sideways drift and into a 20-pip range.
USD/CAD was a strange event around the release of CPI with a pre-rally before the “official” release. The pair was then cashed in on the offer at 1.1635 and choppy within a 30-40 pip range and generally traded with a soft tone closing down on the day and week. Canadian CPI at 2% missed 2.2% expectations.