Global Equity Markets advanced yesterday on lighter than usual economic data releases. In the U.S, the DJIA closed out its session at 10,414.14 picking up 85.25 points. U.S Treasury yields rose as well, signaling investors believe a recovery is under way just ahead of today's GDP print. Additionally, the BOJ issued statements yesterday confirming their intentions to fight deflation with near zero level interest rates. Investors concerned that low interest rates are actually going to spawn inflation elsewhere in the global economy, now believe that a U.S Federal Reserve interest rate hike is in the foreseeable future.
The Dollar is continuing its now 3 week long rally with the DXY closing above 78 for the first time since early September. The Aussie was the big loser on the day giving up nearly 1% to the Greenback with the Kiwi and Cable close behind. Only the Loonie advanced against the Dollar on Retails Sales figures that printed in line with expectations. On the commodity front, Gold continues to decline as the dollar retraces its losses. Gold gave up $19.80 on the day to close back below 1,100. Oil has firmed at 73.72 a barrel.
Looking ahead to today and ahead of the Holiday, we will continue to see light volumes. Economic data releases for today center around GDP as the U.K, New Zealand, and the U.S are all set to print. In the U.K and New Zealand analyst expect GDP to show less contraction than prior prints. However, analysts are expecting another positive U.S print and that should provide sufficient support for the Greenback to resume its rally.
Upcoming Forex Events December 22, 2009-12-22
GBP GDP (QoQ) Forecast -0.10% Previous -0.30%
USD GDP (QoQ) Forecast 2.80% Previous 2.80%
USD Existing Home Sales Forecast 6.25M Previous 6.10M
NZD GDP (QoQ) Forecast 0.40% Previous 0.10%
The Dollar is continuing its now 3 week long rally with the DXY closing above 78 for the first time since early September. The Aussie was the big loser on the day giving up nearly 1% to the Greenback with the Kiwi and Cable close behind. Only the Loonie advanced against the Dollar on Retails Sales figures that printed in line with expectations. On the commodity front, Gold continues to decline as the dollar retraces its losses. Gold gave up $19.80 on the day to close back below 1,100. Oil has firmed at 73.72 a barrel.
Looking ahead to today and ahead of the Holiday, we will continue to see light volumes. Economic data releases for today center around GDP as the U.K, New Zealand, and the U.S are all set to print. In the U.K and New Zealand analyst expect GDP to show less contraction than prior prints. However, analysts are expecting another positive U.S print and that should provide sufficient support for the Greenback to resume its rally.
Upcoming Forex Events December 22, 2009-12-22
GBP GDP (QoQ) Forecast -0.10% Previous -0.30%
USD GDP (QoQ) Forecast 2.80% Previous 2.80%
USD Existing Home Sales Forecast 6.25M Previous 6.10M
NZD GDP (QoQ) Forecast 0.40% Previous 0.10%
