RTTN: Dollar Pauses Ahead Of Jobless Claims, Durable Goods
(RTTNews) - The dollar was steady versus most majors on Thursday, as traders braced for a deluge of economic data from the US on the day before Wall Street's Christmas break.
Even with the release of pivotal data related to weekly jobless claim, personal spending, and durable goods, the currency markets may be relatively subdued, as traders may be getting home for the holidays.
The dollar has edged higher against the euro and sterling in recent weeks, with austerity measures take by euro zone nations and the UK likely to weigh on economic growth across the Atlantic.
Reports suggested that China was ready to buy 4-5 billion euros of Portuguese sovereign debt to help ease the pressure in debt markets.
There was little movement against the euro, as the dollar stayed near this a 3-week high of $1.3072 from Tuesday's session.
Against the sterling, the buck was hovering within a penny of yesterday's 3-month peak of $1.5355.
Mortgage approvals in the UK hit a 20-month low in November, reflecting weak housing market activity. Furthermore, net mortgage lending by banks was at its weakest in 11 years.
Meanwhile, the dollar remained under modest pressure versus the yen following yesterday's release of encouraging trade figures from Japan. Both imports and exports picked up noticeably in November, driving the dollar to Y82.85.
The dollar recovered some of its losses in very recent dealing, improving to Y83.20.
The Commerce Department will release its durable goods orders report for November at 8.30 a.m. ET. Economists look forward to a 1% drop in durable goods orders for November, following a 3.4% month-over-month decline in the previous month.
At 8.30 a.m. ET, the Bureau of Economic Analysis will release its personal income & outlays report for November. Economists expect the report to show that personal income rose 0.2% and personal spending increased 0.5% in the month.
The Labor Department will release its customary jobless claims report for the week ended December 18th at 8:30 a.m. ET. Economists expect a small increase in claims to 424,000 for the week following 423,000 reported for the previous week.
At 9.55 a.m ET, the Reuters/University of Michigan's final report on the consumer sentiment index for December will be tabled. The consumer sentiment index is expected to be upwardly revised to 75 from the mid-month reading of 74.2.
The Commerce Department will release its new home sales report for November at 10.00 a.m ET. The consensus estimate calls new homes sales of 303,000.
