New York Session Recap

The buck was lower against most of the majors in NY trading as poor economic data, lower stocks and some big technical breaks saw the greenback sink. The S&P 500 fell about -0.5% and this was helped by a weak US November construction spending report and horrid motor vehicle sales for December. EUR/USD added more than 50 points and was sitting near 1.3610/20 as the session was coming to a close. Look for 1.3650 as the next barrier to upside here. The move in GBP/USD was more impressive as Cable jumped more than 200 pips towards the 1.4710/20 zone.

Crude oil prices jumped nearly 5% on the day as the only thing holding back the move was the critical $50/bbl barrier. Geopolitical tensions still look to be behind the recent surge as Israel moves deeper into Gaza. This led to an absolute plunged in USD/CAD which sank more than -230 pips in NY and was sitting near the 1.1870 intraday lows minutes before the close. The 1.20 break looks to have been major from a technical standpoint as well and we would reckon that a move back above that level would elicit some good buying here.

Upcoming Economic Data Releases (Asia Session) previous forecast

• 1/5 23:50 GMT JN Monetary Base (YoY) DEC 1.90% - -

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