FX; The Canadian dollar fell against the dollar as commodity prices continued to fall
The U.S. dollar rose vs. most major currencies as Obama’s speech proposed to limit the size and trading activities of financial institutions to deter risk. Initial Jobless claims rose 36,000 to 482,000 the past week. Continuing claims fell 18,000 to 4,599,000. Leading indicators rose 1.1% in December, higher than forecast 0.7%.
The euro fell against the dollar today as investors increased risk aversion due to falling equities and commodities. The Euro Zone composite index of purchasing managers showed that expansion slowed with a reading of 53.6, lower than forecast 54.4.
Sterling fell against the dollar as the UK budget deficit was the highest for any December since records began in 1993. Britain had a budget deficit of 15.7 billion GBP, adding to pressure for the government to cut spending.
The Japanese yen continued to strengthen as falling equity and commodity prices bolster safe-haven flows.
The Canadian dollar fell against the dollar as commodity prices continued to fall.
Crude oil prices dropped below $77 per barrel and gold prices fell below $1,100. Whole sales prices rose 2.5% month-over-month in November, much higher than forecasts 0.5%.
Both the Australian and New Zealand dollar fell against the dollar even as government reports showed China, Australia largest trading partner, had fourth-quarter growth that rose at the fastest pace since 2007. The gross domestic product rose 10.7%, which eased concerns that there will be a slowdown in China. The Aussie and kiwi were hurt by falling equity and commodity prices which reduced demand for higher-yielding assets.
