Monday, 27 Dec 2010

Euro Edges Up in Light Trading Day

The euro made small gains across the board in a light trading day today. Typically, the time around the Christmas and New Years holidays create a low volatility situation in the marketplace, with today being no different. That being said, investors shrugged off the recent Chinese decision to hike a key interest rate, and sent riskier currencies, like the EUR, higher. The EUR/USD pair, curently trading around the 1.3140 level, is up some 40 pips from earlier this morning. Against the yen, the euro has gone up around 30 pips in the same amount of time. Currently the EUR/JPY pair is trading around the 108.85 level.

Tomorrow, another slow news day is expected to bring low volatility to the marketplace. That being said, the US CB Consumer Confidence figure may shake things up a bit. Consumer confidence in the US is forecasted to go up from last month. If true, the dollar may be able to make some short term gains in afternoon trading.