Wed 8th Dec: Dollar finds support from poor data and continued jawboning

The Euro managed to hit another all time high despite continuous rhetoric intervention from the ECB officials.
The dollar consolidated after initially dipping to 1.3468 against the euro and cable touching the 1.95 mark. A mixed bag of data releases from the Germany and further jawboning saw the single currency give up some of its gains against the dollar.
Germany’s December Economic sentiments rose to 14.4 beating market expectations however the current conditions index deteriorated to –64.2 as against previous months figure of –57.8.
Whislt the Central Banks in Australia and Canada left their rates unchanged after revising the growth figures, the markets expects a retreat in the respective currencies.
Yen inched towards the 103 levels as markets await the Q3 GDP figures from Japan, which are likely to show a dip.
Markets are expected to watch out for any further intervention and closely monitor the data expected from Japan and the Eurozone apart from the all important PPI and sentiment figures from the US.