US$ Range Bound Ahead of a Slew of Data

The U.S. dollar was largely unchanged against the majority of its rivals overnight, despite a rally in European equities and as U.S. stock futures foreshadow a higher open for American shares.  The greenback appears to have fallen into “holiday trading” ranges as liquidity thins ahead of Christmas.  The Euro remains flat against its counterparts as traders await Italy’s Senate vote on Prime Minister Mario Monti’s 30 billion-euro emergency budget plan.  The lower-house Chamber of Deputies passed the package last week, Italy’s third round of austerity since June.  The British pound found some strength against the Euro but remained flat against the U.S. dollar as a report showed the U.K. economy expanded more than forecast.  U.K. gross domestic product expanded 0.6% from the previous quarter, faster than the 0.5% previously estimated, the Office for National Statistics said today in London.  Meanwhile, the U.S. economic docket showed that the economy in the U.S. grew less than previously estimated in the third quarter, reflecting a smaller gain in consumer spending.  GDP climbed at a 1.8% annual rate, down from 2.0% estimated last month, Commerce Department figures showed today.  Household purchases increased at a 1.7% rate, down from 2.3%.  In addition, the number of applications for unemployment benefits unexpectedly dropped last week to the lowest since April 2008, a sign that the U.S. labor market is firming heading into the New Year.  Later, the Thomson Reuters/ University of Michigan final index of consumer sentiment is expected to rise to 68 this month, the highest since June, from 64.1 in November.  Nevertheless, expect the U.S. dollar to remain in choppy, but tight ranges ahead of the holiday weekend.