FOREX TODAY: AS MARKETS GET INTO THE HOLIDAY MOOD, THE US DOLLAR SOMEWHAT RECOVERS

Economic data-wise, the Asian session will be quiet. The use of credit cards will be reported by New Zealand. The UK will make public borrowing statistics for November later in the day. The Philly Fed, a new estimate for Q3 GDP, and the weekly Jobless Claims US reports. Retail sales are due in Canada.

What you need know on Thursday, December 21 is as follows:

On Wednesday, the US Dollar appreciated due to positive US economic data and a minor decline in market mood. A five-day winning streak for Wall caused the Santa Claus rally to stall. Treasury rates dropped to all-time lows. At 3.86%, in July 27.

US data on Wednesday beat forecasts, with existing home sales climbing to 3.82 million, above the 3.77 million market estimate and snapping a five-month losing trend. CB Consumer rising from 101.0 to 110.07.

The words foreign [currency] combined to form the acronym forex (FX). The process of converting one currency into another for a variety of purposes—usually trade, tourism, or commerce. The Bank for International Settlements, a global bank that serves national central banks, stated in a 2022 triennial report that the daily global volume of FX trading hit $7.5 trillion in 2022.

Wells Fargo analysts on existing home sales:

The 3.82-million-unit still slow by historical standards, but November's is the most recent indication that housing activity is beginning to pick up.

Important economic indicators, like Philly Fed, the weekly Jobless Claims, and a revised estimate of Q3 GDP growth, are due on Thursday. The Core Personal Consumption Expenditure (Core PCE) report is coming on Friday.

Consumer Confidence improved in December, according to Eurostat. In contrast to market predictions of early rate cuts in 2024, European Central Bank (ECB) officials have persisted in warning that interest rates need to stay at the current level for some time. Though it dropped, the EUR/USD pair remained above the 20-day Simple Moving Average (SMA). In the near term, the pair is stabilizing around 1.0950 and without exhibiting any discernible patterns.

Following the UK's lower-than-expected inflation report, the Pound performed poorly. Inching closer to the 20-day SMA, the GBP/USD pair now stands at 1.2640. Data on public borrowing for November will be released by the UK.

After days of volatility, the USD/JPY pair stabilized and closed flat at 143.70. The reduced yields on government bonds continue to strengthen the Yen.

Before rising again above 1.3350, the USD/CAD pair fell to new four-month lows at 1.3310. Thursday's Retail Sales report from Canada is anticipated to indicate a 0.8% gain in October.

NZD/USD turned negative and fell to 0.6250 after hitting a five-month high just below 0.6300. On Thursday, New Zealand will release its credit card spending data.

Metals performed in different ways. Silver increased, hitting weekly highs of $24.45 before faltering and retreating to $24.15. Conversely, the price of gold dropped and reached the $2,030 support level.

(On December 20, at 20:41 GMT, this story was updated to reflect that the US Existing Home Sales information was made available on Wednesday. The story was stated to have been published on Tuesday in an earlier version.)