I Forex Report Of 1st Jan 2015

 

• Dollar pushes lower on year-end profit-taking

The dollar pushed lower against the other major currencies on Tuesday, after the release of lower-than-expected U.S. consumer confidence data and as investors locked in profits from the greenback's recent rally to nine-year highs.

Trading volumes were expected to remain light ahead of the New Year's holiday.

The U.S. dollar index, which measures the greenback against a basket of six major currencies, was down 0.35% to 90.22, not far from the nine-year high of 90.66 hit overnight. EUR/USD edged up 0.11% to 1.2168, off two-year lows of 1.2124 hit earlier in the session.

• EUR/USD steady near 2-year trough in subdued trade

The euro held steady against the U.S. dollar in subdued trade on Tuesday, hovering close to two-year lows as expectations for a U.S. rate hike in 2015 continued to lend broad support to the greenback.

Trading volumes were expected to remain light ahead of the New Year's holiday.

EUR/USD hit 1.1214 during European afternoon trade, the pair's lowest since July 2012; the pair subsequently consolidated at 1.2160.

The pair was likely to find support at 1.2040 and resistance at 1.2228, the high of December 26.

The dollar remained broadly supported after final data last week showed that U.S. gross domestic product rose 5.0% in the third quarter, exceeding expectations for a growth rate of 4.3% and up from 3.9% in the three months to June.