Dollar dented as consumer confidence on.......>

FOREX: Dollar dented as consumer confidence on thin ice

-After some furtive strength in early Europe and US, the greenback took a knock

on the release of poor US consumer confidence, allowing EUR/USD to recover 1.14.

Nonetheless, with light volumes and liquidity, moves may not be long-lasting

with markets focusing on the broader picture for now. Both AUD and CAD touched

YTD lows against the USD today. This, twinned with the short-lived recovery in

equities has left investors particularly risk-sensitive at the turn of the year,

with the extended government shutdown under President Trump not helping matters.

-Haven FX were the main beneficiaries, with the JPY and CHF outperforming. JPY

strength tipped USD/JPY back below the 200-dma with markets eyeing a close below

to extend USD/JPY losses.

-Commodity-tied FX underperformed from the Asia-Pacific session onwards, with

oil futures dropping as much as 2% at some points of the session, proving

commodity price uncertainty is here to stay.

-Attention turns to Japanese unemployment data, regional and national German

CPIs and the final US Chicago PMI release of the year.