This might be a good Christmas gift for the US policymakers after all.
After a cocktail of economic data were released as we close 2013, the US Dollar is building momentum to finish the 2013 trading year with a bang. EURUSD is surging to bull territory showing signs that the Euro is not that attractive to investors and international retail organizations; US Dollar is their main preference after all.
The core goods data which were released a couple of days ago far exceeded market expectations, surging 4.5% from November numbers, blasting a meager 0.7% expectation by market participants and analysts. This figure tells the level of activity of private investment within a particular economy. Here, the US Economy has seen a rise in private investment. This has led to some investors to believe that the US Economy is building its momentum into 2014.
Other economic data for the United States were as well stellar and went beyond expectations. The Federal Reserve will have more reasons to withdraw the stimulus program, albeit in a staggered manner, come 2014. Moreover, budgetary concerns are also sent to the margins as legislators are seen to be more serious in trying to avoid a repeat of a government shutdown.
The USD Index is hovering in the mid-80.00s to low 81.00s level. This is somewhat expected because some traders are staying away from the market to avoid losing money this Holidays season.
Miguel Dimayacyac is a law student based in the Philippines with an interest in forex trading and the global financial markets as a whole. Having completed a Bachelor’s degree in Management at Ateneo de Manila University, he is currently working towards a Juris Doctor graduate Law degree and expects to graduate in 2017. Outside of his university studies, he has also attained a Basic Trading Diploma from Global Capital Market Solutions and was a member of the Junior Fellowship for Financial Literacy in 2012.