FX Daily Wrap Up

The USD took a quick gain today, only to lose steam and be beaten back to almost where it began. Economic data out of Europe was materially stronger today, as French consumer spending for the month of December was higher by 1.3 percent, bringing the annual rate to 6.8 percent. While this is the highest since September of 1998, the trend for Europe is that the French numbers traditionally bring down the currency against the majors. This recent gain was led by a 2.0 percent jump in car sales after the figure dropped 1.0 percent the month prior. Sales in the retail sector also contributed significantly, coming in at 1.2 percent for the month. Fourth quarter consumption is up for Great Britton and the Euro-zone. In addition to positive spending, Industrial New Orders beat expectations with a jump of 1.4 percent. Conventional wisdom states that positive data should lead to a gain for the Euro, but today the Dollar started off in control before losing its hold and finishing out the American session near where it started out. The EUR/USD is currently trading at 1.3025. David Hilgeman