FX Daily Wrap-Up

Today the US dollar rallied nearly 80 points from the European open. This might be a retracement from yesterday's EUR/USD rally in which the Euro gained over 100 points with a good trending market. Yesterday's Housing Starts and Producer Inflation were expected to draw weak interest from the market, however a sizable gain in producer prices caught traders by surprise causing volatility to rise after the release. Major economic releases are for the most part done for the year, this typically is the period with lower liquidity and traditionally smaller ranges in addition, and this is the last full week of the year with out a holiday upsetting trading. The only major news event released today that affected the US markets was the Canadian Wholesale Sales and US DOE Crude Oil Inventories. Canadian wholesale numbers were lower for the second straight month, and showed a retraction for the month prior. With that the bearish figures were not enough to slow the Canadian Dollar's rally. The USD/ CAD pair hit a high near 1.1535 before the Canadian dollar pushed to a low of 1.1425 in relatively heavy trading for the season. Heading into the Asian session, the EUR/USD is trading at 1.3170 with the Dollar bears in control.

XPRESSTRADE Analyst David Hilgeman