New York Forex Wrap Up: Sound and fury signifying nothing

• US GDP revised down to -6.2% from -3.8% previously in Q4 as inventories build, exports fall
• Chicago PMI rises to 34.2 in February from 33.3
• University of Michigan consumer sentiment index fell to 56.3 from 61.2 in January
• S&P says still expects more downgrades than upgrades despite CEE bailout package
• Canada reports first current account deficit in decade, budget barely in surplus
• US oil demand lowest in a decade.
• FDIC doubles estimates of bank failure costs, raises insurance fee
• S&P index closes below November low, down 11% for February

There was crazy price action today during the new York morning with markets extremely thin for month-end. EUR/USD fell to 1.2605 after US GDP came in at a disappointing -6.2% but was soon snapped up, rebounding all the way to 1.2737 by the 16:00 GMT fixing. There was talk of a trading error ahead of the fixing which required a large amount of EUR/USD to be dumped shortly there after, pushing it down to 1.2630 before it bounced to 1.2720 again. Day’s range in NY: 1.2605/1.2737

USD/JPY was whippy as well with heavy profit-taking early in the session helping trigger stops below the 97.10 and 97.00 levels. USD/JPY fell to 96.90 before exploding to the topside, reaching 98.16 before stalling. NY range 96.90/98.16.

Cable recovered heavy early losses after the poor US data and a wave of GBP/JPY profit-taking, rebounding to 1.4345 before stalling. 1.4383 is next resistance, the 50% retracement of the week’s 1.4657/1.4111 range.

NY session range forGBP/USD 1.4111/1.4345