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ForexLive US wrap-up: GBP the standout

|Includes: FXE, UDN, PowerShares DB USD Bull ETF (UUP)
  • Odds of Bernanke confirmation improve; vote later in week
  • US existing home sales tumble 16.7% in December
  • Greek debt issue up-sized to EUR 8 bln for 5-year bond; demand strong; yield 6.20%
  • Moody’s: Bond sale shows Greece able to fund itself this year
  • German government to raise GDP forecast to 1.4% from 1.2% on Wednesday
  • Senator McCain to vote against Bernanke confirmation
  • Portuguese FinMin: Deficit to be cut in 2010
  • S&P 500 closes off session highs, up 0.5%
  • Oil rises $0.60 to $75.12; Gold closes mid-range at $1097.

It was one of the quietest US sessions in memory today as risk recovered somewhat overnight as EUR/USD reached 1.4197 in London but New York remains somewhat on edge, waiting for Bernanke to be confirmed and important data to be be released later in the week. We traded a frightfully dull 1.4112/1.4162 range in New York. Most dealing was within a 1.4130/50 window.

USD/JPY was just as listless, trading 89.95/90.34. EUR/JPY was linked closely with stocks today and the cross and USD moved in sync today. It opened at the highs and ranged between 127.20 and 127.96.

EUR/GBP and Cable were the big movers during the US morning as the cross fell sharply throughout the session. EUR/GBP slumped from 0.8781 to 0.8706, helping boost cable as high as 1.6260 intraday  in New York. One day up, the next day down for the cross and vice versa for Cable…

AUD/US traded quietly in New York with traders still sorting out China’s intentions regarding monetary policy going forward. Most are unsure if China is tugging gently on the reins or yanking on them, trying to break the market’s momentum. 0.9020/0.9090 was the range with the highs seen at midday in London. We close at 0.9043.

Disclosure: no positions