Dollar Ends Trading with Gains, Economic Data Helps

The US dollar ended today’s short trading session with gains against most major currencies, though falling versus the Great Britain pound, as the positive outlook for the US economy led to speculations about additional quantitative easing tapering from the Federal Reserve. Indeed, macroeconomic data supported such view.

Durable goods orders climbed 3.5 percent in November, exceeding specialists’ expectations, after falling 0.7 percent in October. New home sales were at the seasonally adjusted annual rate of 464,000 in November, above the consensus forecast of 449,000. As for less positive news, the manufacturing index of the Federal Reserve Bank of Richmond was unchanged at 13 in December, while analysts have hoped for an increase to 15.

The trading session was shorter than usual today and most markets will be closed tomorrow for the Christmas holiday. Trading should resume on Thursday.

EUR/USD fell from 1.3694 to settle at 1.3674. USD/CHF advanced from 0.8937. Meanwhile, GBP/USD edged higher from 1.6353 to 1.6367 following the intraday drop to 1.6320.

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