USD Rally Continues
USD has continued to drift higher over the week, supported by better manufacturing data earlier in the week. Trading has been fairly light, however, ahead of the Christmas week next week which will see a big reduction in daily traded volumes.
Over today’s US session there are a few economic releases that might cause some movement with final GDP, core PCE, and personal spending all due. USD index trades 97.01 last.
EUR Higher on Friday
EURUSD has been a little higher today so far, despite the continued move higher in USD. EUR too has seen better data this week with the German Ifo business climate reading coming in better than expected.
ECB chief Lagarde recently noted that risks to the eurozone had diminished with the recent slowdown showing signs of bottoming out, which has supported EUR. EURUSD trades 1.1120 last.
UK Brexit Vote Due
GBPSD has been a little softer this week with price grinding lower, following last week’s elections rally. Today, UK MPs will vote on whether to back the PM’s Brexit deal. With a strong majority in parliament now, Johnson’s deal is expected to pass, confirming that the UK will leave the EU on January 31st 2020. GBPUSD trades 1.3029.
SPX500 Ends Week Near Highs
Risk assets have softened a little on Friday though have been well supported across the week. The trade deal is keeping risk appetite positive into the end of the year, seeing the SPX500 trading into fresh record highs again this week. SPX500 trades 3206.43 last, still above the 3199.22 level for now.
JPY & Gold Down on Friday
Safe havens have had a softer day so far on Friday with both JPY and gold lower in light of the recent rally in both equities and the USD. XAUUSD trades 1477.80 last, pulling back further from the week’s highs. USDJPY trades 109.36 last.
Crude Hold Above 60
Oil prices have had a quiet start to the day on Friday though are ending the week firmly higher. On the back of the US-China trade deal news, which has been a major supporting factor for oil, crude prices were also higher this week.
This is in response to a bullish report from the EIA which reported a drawdown in US crude stores last week. Crude trades 61.02 last, ending the week above the 60 level as of writing.
Loonie Lifts Off Lows
USDCAD has been a little firmer so far today, despite the rally in crude. The strength in USD has helped USDCAD recover some ground, though the pair is still ending the week lower. USDCAD trades 1.3136 last, having broken down through the 1.3145 level.
Aussie Ends The Week in the Green
AUDUSD has rallied again on Friday with price trading .6893 last, just off the week’s highs as of writing. The domestic unemployment rate was seen moving lower again last month, to 5.2% from 5.3% prior. Along with the US-China trade deal news, better data has helped support AUD across the week.