Markets resolve to sell Sterling in festive...>

FOREX: Markets resolve to sell Sterling in festive trade

-Newsflow and currency prices were unsurprisingly sanguine and quiet Monday, but

those traders still at their desks still saw reason to sell GBP, which was the

poorest performer Monday and hit a new post-election low of $1.2905 for little

reason. The moves come despite speculative positions clocked with the CFTC

inching to the smallest net short since mid-May.

-US durable goods orders fell well below forecast in the November prelim reading

(-2.0% vs. Exp. +1.5%), but markets shrugged off the release with the fall

pinned on defense aircraft and  parts category, which saw a sharp decline of 73%

over the month. Canadian GDP also didn't fare well, inching lower on the month

by 0.1 ppts. CAD softened slightly upon release, but recent ranges were largely

respected.

-Tuesday's session will likely be more muted than Monday's, with US assets

seeing an early close for the Christmas holidays. The data calendar reflects

this, with no material releases due Tuesday, with only the Richmond Fed

manufacturing index and BoJ minutes scheduled.