Dollar Continues To Tumble
The economic calendar was light today with only the
MBA weekly report and Factory Orders hitting the wires. The MBA reported that
mortgage applications volume declined as purchase activity fell (report).
Meanwhile factory orders rose slightly more than expected (report).
TradingMarkets added a new FX contributor today. You can read John Forman’s
first article
here.
Austin Passamonte and
Jes Black both wrote interesting articles on the US Dollar this week and be
sure to read
John Netto’s blog where he discussed a trade setup in EUR/USD.
The US Dollar Index recorded another sharp decline
as trader’s interpreted the December FOMC minutes (released yesterday) as
meaning an end to rate hikes was in sight.
Chart courtesy of FutureSource.com
The EUR/USD did the most damage with the Dollar
experiencing its biggest 2-day drop in 5-years versus the Euro.
Chart courtesy of FutureSource.com
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Treasuries closed higher, with the short-end posting the strongest gains. The
gap between 2yr yields and 10yr yields widened from 4bp yesterday to 5bp points
today. The yield curve inverted briefly last week.
Chart courtesy of FutureSource.com
Copper hit a new all-time high today after a strike by workers at Chile’s
Codelco, the world’s largest producer of the industrial metal.
Chart courtesy of FutureSource.com
Economic News
Mortgage Bankers Association’s Market Index Drops 1.5%; Purchase Index Falls
3.4%, Refinancing Index Rises 8.3% (report).
Factory Orders Rise 2.5% In Nov. (report).
Ashton Dorkins