Rational FX: UK Nationwide House Price Index to show steady MOM decrease [31/12/2010]

Rational FX: UK Nationwide House Price Index to show steady MOM decrease [31/12/2010]
Seasonal Greetings All,

Over the festive period currency markets have been locked in tight ranges with the severe bad weather coupled with many Bank Holidays falling during the working week – this has prompted more people to not come into work and has resulted in thin trading.
Below are the main points, however we feel that they are currently of little relevance as mentioned previously there is very thin trading. We are more likely to see traders close positions and move funds into safe haven currencies until the New Year.

Yesterday’s Market Movers

  • There was no data out for release in the UK or the Euro Zone.
  • A big day for the USA however, Weekly Jobless Claims dropped to a 29 month low paving the way for consumers to gain confidence, however, with Holiday Trading effects, currency markets showed mixed results with the Dollar actually dropping against Emerging Market currencies.
  • Chicago Purchasing Managers’ Index came in better than expected as a result of higher Durable Goods Orders and better employment.
  • Pending Home Sales rose from a downwardly revised previous figure, this showed a massive turnaround. Even though sales are below normal levels, it shows that people are confident in buying homes again.
  • This data from the USA will no doubt give traders food for thought on their return to the markets, as we kick off trading Tuesday 4th January.

Today’s Market Movers

  • UK Nationwide House Price Index is expected to show a decrease month on month. Not to mention that it’s costing first time buyers £30,000 to get on the housing ladder.
  • In the US we have the Treasury Currency Report, detailing any new developments in global exchange rate policies of the USA’s trading partners; no doubt China will be mentioned.

Currencies
High
Low
Support
Resistance
GBP/EUR
1.1700
1.1598 
1.1600
1.1740
GBP/USD
1.5512
1.5360
1.5300
1.5530
EUR/USD
1.3300
1.3180
1.3155
1.3400
We wish you a very nice day.

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