DailyFX - Forex Market News

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• Crude Oil, Gold and Silver Poised to Rise as US Dollar Weakens
• Final Days of Yearly Trade Always Tricky and This Year Could Be A Real Trip
• Dollar Carving out a Small, Unstable Range as Headlines Explode
• FOREX: Euro Needs Upside Surprise to Move on German IFO Data
• Bank Research Consensus Weekly 12.19.11
• USD Index at Critical Juncture- Euro Prospects Turns Bleak
• USD/CAD: Trading Canada’s Consumer Price Report
• USD Weakness To Be Short-Lived, RBA Minute To Drag On Aussie
• Guest Commentary: Oil Weekly Outlook December 19-23
• Forex Strategy Outlook: Caution Advised on Illiquidity into New Year
• Euro Euphoria Unravels, Sterling Outlook Turns Increasingly Bleak
• Tight Ranges Emerge as Holiday Liquidity Conditions Begin to Set In
• RBA, BOE Minutes in Focus Ahead of the Holiday

Crude Oil, Gold and Silver Poised to Rise as US Dollar Weakens Posted: 20 Dec 2011 01:15 AM PST Crude oil, gold and silver prices are poised to advance as a rebound in sentiment-sensitive assets puts downward pressure on the safe-haven US Dollar.

Final Days of Yearly Trade Always Tricky and This Year Could Be A Real Trip Posted: 19 Dec 2011 11:20 PM PST In today’s “Opening Comment” we highlight some potential developments in the final days of the year which could expose the markets to heightened volatility in the razor thin trade…

Dollar Carving out a Small, Unstable Range as Headlines Explode Posted: 19 Dec 2011 09:57 PM PST Under normal circumstances, the dollar’s slow start to this trading week would be perfectly logical. History shows us that the final weeks of the trading year are defined by tempered trends and volatility. However, we aren’t working with our standard scenario. The quiet that we are seeing now does more to unease than it does to pacify.

FOREX: Euro Needs Upside Surprise to Move on German IFO Data Posted: 19 Dec 2011 09:09 PM PST The Euro is unlikely to prove meaningfully responsive to the German IFO business confidence report barring a significant positive deviation from expectations.

Bank Research Consensus Weekly 12.19.11 Posted: 19 Dec 2011 02:10 PM PST Cutting forecasts again: When we slashed our global growth forecasts back in August (see Global Economics: Dangerously Close to Recession, August 17, 2011), many called us alarmist. However, consensus growth expectations have followed us down and recession fears have been on the up. Rightly so, as in our view Europe has now entered another recession, only a little more than two years after the last recession ended - we cut our 2012 GDP forecast for the euro area from 0.5% to -0.2%. Our US base case remains anaemic growth of just over 2% next year, but this crucially depends on our assumption that Congress will extend most of this year's fiscal stimulus into next year - expiration could easily tip the US into a double-dip. Joachim Fels, Global Head of Economics, Morgan Stanley

USD Index at Critical Juncture- Euro Prospects Turns Bleak Posted: 19 Dec 2011 02:03 PM PST The Dow Jones FXCM Dollar Index was markedly higher at the close of North American trade with the greenback once again testing key Fibonacci resistance at the 10,070 level. Here are the levels to watch this week.

USD/CAD: Trading Canada’s Consumer Price Report Posted: 19 Dec 2011 01:21 PM PST As the headline reading for inflation is expected to hold steady in November, the stickiness in price growth could prop up the Canadian dollar as the data dampens speculation for a rate cut.

USD Weakness To Be Short-Lived, RBA Minute To Drag On Aussie Posted: 19 Dec 2011 08:44 AM PST The greenback struggled to hold its ground on Monday, with the Dow Jones-FXCM U.S. Dollar Index falling back from a high of 10,070, but recent weakness is likely to be short-lived as the fundamental outlook for the world’s largest economy improves.

Guest Commentary: Oil Weekly Outlook December 19-23 Posted: 19 Dec 2011 08:11 AM PST Oil sharply declined during last week after oil had moderately inclined during November and October.

Forex Strategy Outlook: Caution Advised on Illiquidity into New Year Posted: 19 Dec 2011 07:00 AM PST FX traders predict that volatility will drop precipitously into the final two weeks of the year, favoring US Dollar range trading until further notice.

Euro Euphoria Unravels, Sterling Outlook Turns Increasingly Bleak Posted: 19 Dec 2011 06:40 AM PST Risk appetite firmed up during the overnight trade as European policy makers scrambled to setup a EUR 200B credit line with the International Monetary Fund, but the rebound in market sentiment could be short-lived as the fundamental outlook for the euro-area turns increasingly bleak.

Tight Ranges Emerge as Holiday Liquidity Conditions Begin to Set In Posted: 19 Dec 2011 06:30 AM PST The Canadian Dollar lead the majors in pre-North American trading following a mostly quiet overnight session on Monday.

RBA, BOE Minutes in Focus Ahead of the Holiday Posted: 19 Dec 2011 03:00 AM PST Price action this week unfolded mostly as expected, considering the preceding week’s theatrics. The post-Euro-zone summit reaction was weak, ultimately leading to a sell-off of higher yielding currencies and risk-correlated assets, as any solutions set forth proved to be deemed inadequate by market participants.

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