On gloomy U.S. economic data, U.S. Dollar Struggles
Versus a basket of currencies and the Japanese Yen, the U.S. Dollar lost ground in very thin holiday trading today while investors braced themselves for economic data from the United States that is likely to add to an already grim outlook on the future of the American economy.
Traders awaited what is expected to be gloomy data from the U.S. on durable goods and consumer spending. Yesterday, U.S. housing figures showed that the housing market took yet another sharp downward turn in November. The data released yesterday showed that existing home sales and prices saw a record drop in November, which prompted selling in the U.S. Dollar.
The numbers were not unexpected, according to London Rabobank’s currency strategist, Jeremy Stretch, but naturally didn’t help the U.S. Dollar trend. According to Stretch, investors are bearish on the U.S. currency and are reflective of the weakness in the U.S. economy.
At 08:42 GMT, the U.S. Dollar fell to 90.25 Yen, a slippage of .7%, and in range of the low touched last week of 87.13. Against the .DXY, the U.S. Dollar lost.3%, trading at .DXY 81.200.
Forex trading is expected to be lighter than normal for the remainder of this week, with U.S. markets closed for the Christmas holiday tomorrow, and U.K. markets closed for the remainder of the week. Asian markets will operate as usual, though trading is expected to be very light.