USD Strengthens Ahead Of A Busy US Session

http://ashraflaidi.com/forex-news/usd-firms-from-repubs-standoff-ahead-of-busy-us-session


UK public sector net borrowing rose; UK GDP revisions mixed; German GfK consumer climate fell; Gold consolidates losses. A busy session brings durable goods orders; core PCE; personal spending and income; UoM consumer confidence.

Bundesbank president and the ECB governing council member Jens Weidmann reiterated today his criticism of the ECB's OMT program and warned against the tendency to share risks among the EZ countries. He said that the conditions attached to the OMT are not credible and added that the ECB put itself on a slippery slope. 

In the UK, public sector net borrowing rose sharply in November and reached GBP 15.3 bln from previous GBP 6.0 bln and the final result of Q3 GDP was mixed. The sharp increase was revised lower to 0.9% q/q but higher to a flat reading from -0.1% y/y. A downward revision was seen in the production as well as the service sector. GBPUSD trades around 1.6240.

German GfK consumer climate worsened for January to 5.6 from December's 5.8 while analysts expected an improvement to 5.9. EURUSD trades around 1.32.

Spot gold consolidates sharp losses that it incurred over the past three days but it continues to trade near lows around 1647. Short term support is seen at 1627 ahead of a key support at 1530.

The US session begins at 8:30 am ET with durable goods orders that are anticipated to rise 0.2% in November while core orders are expected to decline 0.2%. Core PCE price index is seen steady in November at 0.1% and personal spending is seen rising 0.4% while personal income only 0.3%. University of Michigan consumer confidence at 9:55 am ET is expected to be revised to 74.9 from initial estimate 74.5.

Canadian statistics office will release October GDP at 8:30 ET that is expected to rise 0.1% m/m and 1.2% y/y. Consumer inflation is seen easing in November to 1.1% from previous 1.2%.

Patrik Urban