Forex Market Report

The dollar is still surprise in today’s U.S. session.UU. Strength in gold is putting pressure on the dollar, gold remains firm above 1100.ademas level, oil is being strengthened and the barrel is above 78 dollars. The rise in the price of oil could extend beyond 82 dollars the barrel and provide some pressure on the dollar in the short term. The Canadian dollar is the biggest beneficiary by the rebound in oil. The Loonie, Canadian dollar, it was so far the currency with more performance in December, showed an increase of more than 6% compared to the yen and more than 5% respect to the euro.

EUR/CAD reached as low as 1,4972, and the short-term prospects remain bearish. Investors are a little more optimistic then good data of industrial production in Japan. Industrial production rose 2.6% in November, the largest growth in the last 6 months. The momentum of the production is expected to continue with the recovery in China, who is the largest trading partner of Japan. Sales to the retail recovered 0.2 per cent in November, after a fall of – 0.9% in October.Consumer spending remains weak and the sustainability of the recovery in Japan is still highly dependent on exports.