• Iran threatens to block oil exports through the Straits of Hormuz if sanctions are placed on its oil
  • Chicago Fed Midwest manufacturing index 85.8 in November from upwardly revised 85.9 in October
  • Case-Shiller home price index falls 3.4% in October versus a year ago
  • Conference Boards US consumer confidence index rises to 64.5 in December from 55.2 in November
  • Richmond Fed manufacturing index +3 in December from 0 in November
  • ECB sees deposit facility rise to record levels as LTRO cash is placed on deposit
  • US will come within $100 bln of debt ceiling by Friday; Obama to ask for $1.2 trillion extension
  • Dallas Fed Manufacturing index falls -3.0 from +3.2 in November
  • DPJ to propose doubling Japanese sales tax to 10% from 5% by 2015: JiJi Press
  • Obama nominates two to the Federal Reserve Board of Governors
  • Greece to hold elections at end of April
  • S&P 500 unchanged at 1266
  • US 10-yr note falls 2 bp to 2.00%; Italy rises 5 bp to 7.05%
  • WTI rises $1.65 to $101.35; Gold falls $14 to $1593

Very quiet trading amid holiday market conditions. The Iranian threat to close the Straits of Hormuz was the most impactful event of the day, sending crude back above $101 and helping underpin commodity currencies and EUR/USD slightly.

USD/CAD was the main beneficiary of the news, dipping to test support near 1.0175. Stop-loss sell orders in the 1.0165/70 area may come into play overnight.

EUR/USD plied a 1.3057/1.3078 range. Offers are seen from 1.3080 up to 1.3100. Bids are eyed in the 1.3020/25 region.