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Forex: New York Euro Summary

Posted by Joseph Trevisani on Dec 23, 2013 4:23:00 PM

The euro opened at 1.3696 (8:00 am ET) just below the European high at 1.3700 well above the early Asian low at 1.3668.

Many banks close their FX trading books in the early part of December and thereafter provide liquidity only to their best customers until the New Year. Consequently the limited volumes and interest can give exaggerated price movement or none at all. Any substantial trend should be viewed with skepticism until the full market comments in January.

U.S. data at 8:30 am, which included personal income, spending and the PCE deflator elicited little response with a rise to 1.3706. Resistance at 1.3710, the low on the 13th and the high on the 20th, held and the euro dropped back to 1.3689.

 Euro/yen demand brought the euro back, perhaps helped by slightly weaker than expected December consumer confidence (University of Michigan, 82.5 vs. 83.0) which activated minor stops above 1.3710 taking the currency to 1.3717, the day's high. Profit taking in the cross after it reached a more than five year high at 142.70 capped the rally and the euro slipped back to 1.3689 again before closing at 1.3697.

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