The U.S. dollar was under pressure thoughout North American trading caused by softer than envisioned economic data plus a rally in oil prices. The Swiss franc appeared to be the worst G10 performer because of technical strain and rumoured central bank intervention. The New Zealand dollar had been the top gainer.

The U.S. dollar is acting as if all data that is not madly optimistic is a discontent. This really is proof that sentiment in regards to a U.S. recovery has grown much too optimistic. Thursday’s U.S. financial data was merely a little worse than expected however the USD slumped. Durable goods orders dropped 1.3% compared to the -0.5% estimated yet the key line on capital goods requests was better-than-forecast when an upward revision to October’s data is taken into consideration. Housing data proceeds to let down with new home sales at a 290K annualized pace as compared with expectations of a 300K reading. Weekly unemployment claims were precisely in-line with estimations as was the last modification to the December University of Michigan consumer sentiment survey.

USD/JPY ended up lesser during the entire Asia-Pacific session and a brief rally at the beginning of US trading was erased by the economic data. The result was the largest one-day fall in the pair since December.

The lone currency to perform worse compared to the USD had been the Swiss franc. The CHF has been doing a long-term rally and hit record highs versus the euro and pound sterling previously this week. The sharp drop in the franc on Thursday had been curious considering there was no information to back it up. Whispers circulated about probable Swiss National Bank involvement yet year-end profit taking attributable to overbought conditions may be a much more possible explanation.

The commodity currencies were near the top of the G10 complex together with JPY in an uncommon pattern. The intermarket mechanics might have implied a lower day for NZD, AUD and CAD due to typically lower commodity price and stocks. This demonstrates the flow powered dynamics of the marketplace around year-end. In addition, the single commodity to put in a powerful day was crude oil since it climbed to a two-year high yet the Canadian dollar was the laggard of the commodity currency group.

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