Daily Recap - 12/23/2009

1. Dollar took a little breather today from a remarkably strong rally. DXY briefly touched its steep trend line but quickly bounced back. The index failed to make new highs and broke yesterdays lows (but closed above them) - see chart below. Expect the DXY to find support at 77.50, which is the 23.6% retracement, and turn up to test its recent highs. USD remains strong despite lukewarm economic data today (new home sales worst than expected) and disappointing GDP report (yesterday).
   
2. EUR got some reprieve today as concerns over Greece eased a little and as the Dollar took a pause. The EUR recovered a bit against the dollar and, to a greater extent, against the Pound. It did, however, come under pressure against the Swiss franc as the SNB remained mum regarding the possibility of intervention.
3. Aussie finished a good day as gold and commodities climbed.
   
4. Biggest loser today - GBP, losing ground to the Euro and staying flat against the Yen, and Dollar.
5. Biggest winner - Canadian Dollar gaining against all major counterparts (extremely strong against the Yen)
6. Equities shrugged off a mixed bag of economic data and finished a second day of gains.