Currency Trading Update

Trading in the forex markets remains subdued, which is typical of this time of year as volumes tend to drop around the holidays. This has left contestant number 1 in the lead for the third trading day in a row, as he has had much success with EUR/USD. It appears that this contestant is using the EUR/USD consolidation as an opportunity to buy the pair, as he is floating a few positions that were opened near current levels.

Meanwhile, contestant number 2 surged in the rankings on Monday thanks to a few profitable USD/CHF and EUR/USD trades. However, at the time of writing, Tuesday has not proven to be a very strong day for this contestant, which may leave his spot in the top 5 up for grabs.

Here are the indicators that could be making the news over the next 24 hours:

Asian Trading Session
*No key indicators due to be released.

European Trading Session
*No key indicators due to be released.

US Trading Session
12/24, 8:30 ET
US Personal Spending, Durable Goods Orders (NOV) - Economic releases due out at 8:30 ET on December 24 are likely to be broadly disappointing and add to indications that the US recession only worsened during Q4. Indeed, personal spending in the US is forecasted to have fallen negative for the fifth straight month in November at a rate of -0.7 percent, while durable goods orders are expected to have dropped 3.0 percent, marking the fourth straight month that demand has either stagnated or declined. Typically, the US dollar would pull back on figures that were weaker-than-expected, but this may not necessarily be the case since trading should be quiet ahead of the December 25 holiday.

Terri Belkas
Currency Strategist
Forex Capital Markets LLC

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