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31 Dec 2014
USD closes 2014 just shy of its cycle-high – TDS
FXStreet (Barcelona) - Shaun Osborne and Martin Schwerdtfeger, FX Strategists at TD Securities, share that USD struggled in the morning NA session, and closed lower on the day after seeing a fresh cycle high earlier in the day.
Key Quotes
“Equities firmly in the red across the board, lower — albeit just moderately — US Treasury yields, a stronger JPY, and higher gold prices checked most, if not all the boxes of a risk-off day yesterday.”
“The USD struggled during the morning NA session and was unable to recover, closing lower overall on the day. However, to put things on perspective, these losses came on the heels of a fresh cycle high for the greenback earlier in the day, and, despite the USD’s further modest decline since yesterday, the big dollar will most likely end 2014 just a few points shy of yesterday’s multi-year high.”
“Indeed, it seems the FX market is in full holiday mode already. Otherwise, ECB’s Executive Board member Praet comments about the impact of a further decline in crude oil prices since the cut-off date for the December economic projections implying a high risk of negative headline CPI for a good portion of 2015, which in his opinion calls for urgent action, should had seen EURUSD at least a few points lower than where the pair sits now — only two points below yesterday’s close.”
Key Quotes
“Equities firmly in the red across the board, lower — albeit just moderately — US Treasury yields, a stronger JPY, and higher gold prices checked most, if not all the boxes of a risk-off day yesterday.”
“The USD struggled during the morning NA session and was unable to recover, closing lower overall on the day. However, to put things on perspective, these losses came on the heels of a fresh cycle high for the greenback earlier in the day, and, despite the USD’s further modest decline since yesterday, the big dollar will most likely end 2014 just a few points shy of yesterday’s multi-year high.”
“Indeed, it seems the FX market is in full holiday mode already. Otherwise, ECB’s Executive Board member Praet comments about the impact of a further decline in crude oil prices since the cut-off date for the December economic projections implying a high risk of negative headline CPI for a good portion of 2015, which in his opinion calls for urgent action, should had seen EURUSD at least a few points lower than where the pair sits now — only two points below yesterday’s close.”