The Dollar's Technical Tone at the Start of the New Year

The US dollar firmed against nearly all the major currencies in the last week of 2015. The exceptions were the Antipodean currencies and the Japanese yen. The relatively high short-term yields offered Australia, and New Zealand may have attracted some hot flows looking park over the turn. The yen's gains were all scored on New Year's Eve in thin turnover, as equity markets and US yields slipped lower. Since the ECB eased policy on December 2, the US Dollar Index has been mostly confined to a 97.00-99.00 trading range. The consolidative correction has not ended, but the technical tone is improving. We note that the euro finished