US Morning Notes - USD lower, USD share of global reserves fell in Q3

Posted by admin as Forex News

FX Highlights

• The USD is trading lower on the final trading day of the year pressured by firmer equity market trade in reaction to an IMF report which said USD share of world reserves dropped in Q3 to the lowest level in a decade, the Hang Seng index closed 1.5% higher and equity markets are firmer in Europe and the US, GBP supported by report of firmer UK house prices and improving lending conditions, commodity currencies supported by equity market gains and a rally in the price of gold, AUD traded higher despite report of slower private sector credit growth
• Focus turns to today’s release of US jobless claims, the trade expects today’s jobless claims report to show continued improvement in the US labor market and confirm optimism about the US recovery
• Australia’s November private sector credit rose by 0.1%, AUD higher
• UK December Nationwide house prices rise by 0.4%, UK lenders expect credit conditions to improve in Q1, GBP higher
• IMF says USD share of world reserves declined in Q3
• ECB’s Bini Smaghi says that unemployment may continue rise in the months ahead, French Finance Minister Lagarde expects French Q4 GDP growth to be positive, EUR higher
• US equity markets set to open higher, European equities .25% higher, Nikkei closed for holiday

Upcoming Events

• US - Thursday, initial jobless claims for week ending 12/26 will be released expected to rise by 5k to 457k
• CAN - Thursday, no major Canadian economic data is due for release today