Boxing Day rally fades -After an impressive...>

FOREX: Boxing Day rally fades

-After an impressive day for equities yesterday, momentum has failed to follow

through into the Thursday session, with US equity futures and mainland European

indices largely consolidating amid thin volumes and light liquidity. As a

result, USD/JPY has pulled lower from the overnight high printed up at Y111.41,

with the USD pretty mixed against all others. Commodity currencies are suffering

after yesterday's strong session, putting the CAD, AUD and NZD at the bottom of

the G10 pile for now and erasing much of yesterday's gains. 

-It's likely currency markets are driven further by equity sentiment today, with

little data or newsflow expected as the US government remains shutdown. The

Senate are due to meet today but no votes will be held - suggesting the shutdown

may persist into the new year. CNH has gained, however, as Bloomberg reports

that a team of US negotiators will head to China in early January to discuss the

state of trade. The meeting would mark the first since the trade truce struck

between Trump and Xi over dinner in Buenos Aires.

-US weekly jobless numbers are due and consumer confidence for December.