The greenback is getting a bit of a lift in late, holiday-thinned trading. US data this morning was a mixed bag with jobless claims higher than expected but durable goods orders less dire than feared. Personal income and spending were weak. Year-end interest rate pressures may be prompting some short-covering by dollar bears as rates have been known to spike over the turn of the year in the past. In this era or ultra-loose Fed policy, it is hard to imagine the Fed not keeping the market very liquid over the New Year, but markets appear cautious nonetheless.
EUR/USD has eased to New York session lows at 1.3960. Support is down at 1.3915/20. USD/JPY offers remain in place on the approach to 91.00. We trade now at 90.70.
