Filed Under:
Forex pairs in this Article » USD, EUR/USD, GBP/USD, USD/JPY, AUD/USD, EUR/JPY
Talking Points:

• The traditional December liquidity freeze is thwarting FX and capital market themes

• Yet, the yen crosses started the week off with a gap and extension of a prominent rally

• A solidifying December Taper forecast is engendering little positive bias to the dollar

Sign up for DailyFX-Plus to have access to Trading Q&A's, educational webinars, updated speculative positioning measures, trading signals and much more!

The December liquidity suppression is having an uneven effect on the FX markets so far. Growing speculation amongst economists, dealers and traders of a FOMC Taper next week is having little of the expected detrimental impact on capital markets; while the US dollar has further tightened its anemic trading range. Meanwhile, the yen crosses opened with a bullish gap which leveraged EURJPY to a fresh five-year high. Fading liquidity can support prevailing trends, but it also cubs momentum regardless of direction. So, which theme will capitulate: the bull run for yen crosses or tight range for the dollar? We discuss this important question in today's Trading Video.

Sign up for John’s email distribution list, here.

comments powered by Disqus