Greenback holds gains in subdued trade

30 / 12 / 2015 | Market News
The U.S. dollar remained strengthened against its major rivals, amid thin trading volumes ahead of the New Year celebration.

A report released by the U.S. National Association of Realtors revealed that its pending home sales index fell by 0.9% in November, way below anticipations for a 0.5% rise. Pending home sales in October inched up 0.4%, whose figure was upwardly revised from a 0.2% gain.

The greenback remained underpinned following the Conference Board’s report a day before, indicating that its consumer confidence index inched up to 96.5 this month from the upwardly revised figure of 92.6 in November. The median estimate called for an increase to 93.8 this month. 

Another report released by the Bureau of Economic Analysis showed that the U.S. goods trade deficit expanded to $60.5 billion in November, compared to $58.41 billion a month earlier. Economists anticipated the trade deficit to widen to $60.90 billion.

The euro reached 1.0944 during the North American early trade, the session high, to subsequently consolidate at 1.0926. The major was likely to find support at 1.0868 and resistance at 1.0994. 

Earlier on the same day, preliminary statistics indicated that Spain’s consumer price index dropped by 0.3% in December, against expectations for a 0.1% fall, following a gain of 0.4% in November.

Elsewhere, the dollar ticked up against the sterling, with GBP/USD losing 0.11% to trade at 1.4804, while the single currency lost ground against its counterpart, with EUR/GBP falling 0.14% to 0.7361. Official statistics from the U.K. National Building Society showed that home prices advanced by 0.8% this month, above expectations for a 0.5% rise and after a gain of 0.1% in November. 

In the meantime, the greenback was steady against the yen, trading at 120.51, but lower against the franc, with USD/CHF sliding 0.28% at 0.9901.

The Aussie dollar was steady, with the AUD/USD pair trading at 0.7291, whereas the Kiwi lost ground against the yen, with NZD/USD falling 0.27% to 0.6849.

Meanwhile, the greenback was also up against its Canadian counterpart, with USD/CAD gaining 0.30% at 1.3882. The commodities-driven Loonie was under pressure as oil prices fell amid persisting concerns over a global oversupply and lack of demand.
 
Crude oil futures for February delivery inched down 2.55% at $36.92 during the European trade, hovering over the 11-year low of $35.98 reached on the 22nd of December 2015.

The U.S. dollar index, which tracks the greenbacks performance against a group of sic major rivals, rose 0.15% at 98.38. 

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