Daily FX Wrap Up

The biggest news today was, and still is, anything paired with the US Dollar. Yesterday’s Dollar decline appeared to be a full technical swing toward the Euro, which hit a high near 1.3300 and surprisingly held its position into the Asian trading sessions. Today’s retort demonstrates a move headed by data or fundamental reasons, and for many traders holds a greater potential for a longer-term trend. The holiday season tends to reduce the amount of economic news impacting the markets, but this week is uncharacteristically stacked with market-altering information. First up, the FOMC Minutes stated that the economy is still a bit flat, news that was nevertheless received as much improved over the last release. In addition, November’s construction spending was also favorable for the US Dollar, as it contracted for the third consecutive month. This was a smaller dip than expected, and the report showed a big upward revision to October – initially, the 1.0 percent plunge in October represented the biggest drop in over five years, but the adjusted 0.3 percent slip was well within normal bounds. The EUR/USD is currently trading at the 1.3160 level heading into the Asian Sessions. Tomorrow we shall see if the Dollar’s gains are kept. XPRESSTRADE Analyst David Hilgeman