Daily Market Update

Dollar Holds Tight Ranges Ahead of Holiday Weekend

December 22, 2017

Tempus will be closed on Monday, December 25th and will reopen on Tuesday, December 26th.

USD

Like much of the week, the greenback held tight ranges across the board, shrugging off fundamental data that could affect currency markets in 2018. This morning’s economic data showed personal income rose only 0.3% in November, missing expectations of 0.4%. Personal spending ticked higher to beat estimates, but a downward revision of October’s number makes it a “push.”

The PCE Deflator, an important indicator of inflation, was right in line with expectations. Durable goods disappointed showing only 1.3% growth, failing to meet estimates of a 2.0% gain. The so-called “core” reading registered -0.1%. New Home Sales and the University of Michigan consumer sentiment will cross the wires at 10 a.m.

 

EUR

The Euro was unfazed following Catalonian elections that showed separatist eking out a victory. Spanish stocks tumbled over a percent. The Euro initially dipped on the headline but has regained those knee-jerk losses. Eurozone economic data was decent as German confidence strengthened modestly and French GDP data was slightly upwardly revised. Do not expect any major moves in EUR/USD today.

 

GBP

The British pound was mostly unmoved despite a positive revision to third quarter GDP. The quarter over quarter pace of 0.4% was unchanged but the year over year number was bumped higher to 1.7% from 1.5%. Expect the prevailing ranges to hold as European traders head for the exits and enjoy a long holiday weekend.

 

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