Dollar Steadies in Light Trade

By: DailyForex.com

The US Dollar steadied in Tuesday trade, despite much of the developed world having closed financial markets due to Boxing Day celebrations. Analysts concur that with most major markets shut today, clear direction on any particular currency will be difficult to ascertain. On the other hand, in the US, the fact that the federal government is still up and running is Dollar positive given the shutdown threat late last week; the new measure will temporarily fund the US government through mid-January 2018.

As reported at 11:24 am (GMT) in London, the GBP/USD was trading at $1.336, down 0.11%; the pair has ranged from a session trough of $1.33567 to a peak of $1.3370 in today’s session. The EUR/USD was down 0.14% and trading at $1.1854; the pair earlier hit a session low of $1.18510 while the peak is at $1.19500.

Yen Traders Wary After BOJ Statement

The Japanese Yen was up 0.01% against the US Dollar and trading at 113.292 Yen. Markets’ reaction to yesterday’s release of CPI data was muted. The data showed core CPI gaining for the 11th consecutive month with a 0.9% rise (year-over-year). The Japanese unemployment rate also unexpectedly fell while overall household spending was upbeat with a reading of 1.7% in November, well above the 0.5% predicted. Earlier today, the Bank of Japan released its most recent meeting minutes and markets are still digesting the latest announcement from Haruhiko Kuroda, the Governor of the Bank of Japan. Kuroda said that he believes the Japanese economy can continue to grow as short-term constrains are overcome.

Barbara Zigah is a freelance journalist living in Ghana, who specializes in Forex-related content; her online work has appeared in the IB Times, NASDAQ, Benzinga, and Seeking Alpha.