Session Recap: Market in holiday mood; USD holds ranges

FXstreet.com (San Francisco) - Low volume in the Forex market as holiday season arrived this week. Overall, market traded in small ranges with the Euro and GBP advancing against the Dollar and the Greenback in consolidation mode vs the Yen.

Early in the day, upbeat US consumer confidence and personal spending data fueled hopes that the US recovery is for sure. Stocks market rallied to record highs amid budget deal and Fed light-taper version. Gold eased some, consolidating right below $1200/oz, while dollar index struggles to hold above 80.00.

The EUR/USD rose to daily highs at 1.3715 but the pair wasn't able to hold above the 1.3700 and it closed at 1.3695. The GBP/USD remains confined to a 40 pips range in between 1.6330 and 1.6370 with the cable closing the day at 1.6350. The USD/JPY declined to sub-104 levels but the pair managed to recover from 103.80 and it closed at 104.10.

Main headlines in the American session

US personal spending rise 0.5%, income up 0.2%

University of Michigan consumer sentiment unrevised at 82.5 (final)

Italy government wins confidence vote on 2014 budget law in Senate

Stocks rally on Fed light-taper and US upbeat data