Market Awaits Clear Direction, Where is the USD Going?

thecekodok

 Markets continue to move with low volatility, a common move in the last two weeks of December.


This can be seen in the mixed trading of the US dollar compared to its main competitor.


Revealing market conditions in the New York session, the greenback managed to get a temporary boost from a better-than-expected reading of US consumer confidence data in December.


However, the king of the currency declined again in the Asian session with the focus of investors now shifting to the final reading of the gross domestic product (GDP) data for the third quarter which will be published in the upcoming New York session.



On the other hand, the Aussie dollar rose 0.3% to trade around 0.6730 against the depreciating US dollar, while the New Zealand dollar remained limited at 0.6300.


Investors seemed to ignore the news about Russian President Vladimir Putin announcing to increase the country's military potential and Ukrainian President Volodymyr Zelensky's meeting with US President Joe Biden.


The Canadian dollar was little changed, failing to capitalize on Canadian inflation data that showed higher-than-expected numbers in November.


Meanwhile, the euro remained flat while the pound fell on weak UK data as government borrowing hit a November high.


The yen continued to strengthen as the Bank of Japan (BOJ) continued its unscheduled government bond purchases for the second day in a row.

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