Forex headlines for November 25, 2013:

  • Pending home sales -2.2% vs -1.0% expected
  • Dallas Fed manufacturing +1.9 vs +5.0 expected
  • November US Markit services PMI flash 57.1 vs 49.3 prior
  • SNB’s Jordan says from today’s view there is no reason to drop cap
  • US banks warn the Fed over IOER rate cuts
  • Philly Fed lowers Q4 US GDP to 1.8% from 2.3%
  • Deutsche Bank analysts say USD/JPY could hit 120 in a year
  • Gold gains $6 to $1249
  • WTI crude down 66-cents to $94.18
  • S&P 500 down 2 points to 1802
  • NZD leads, CHF lags

The top story heading into the week was a deal to curb nuclear development in Iran but one-by-one the assets that got a lift faded. First gold backtracked, then oil, then stocks and finally USD/JPY which ends the day near 101.47 from as highs as 101.90.

The first wound to the upbeat sentiment was from the pending home sales report as it took away the momentum and eventually sentiment cracked.

The big mover in US trading was cable. Not long after US traders rolled in, the European low of 1.6184 broken and the first wave of selling was down to 1.6160 and then eventually 1.6133. Last at 1.6155.

USD/CAD grabbed the attention of the market in Europe after breaking the August high of 1.0568 to 1.0583, hitting some stops on the way. The gains didn’t hold and the pair eventually slipped back to 1.0552.

AUD/USD ends the day lower for the four consecutive session but stabilized at 0.9161 after falling as low as 0.9120.

Gold dropped to a four-month low of $1225 but stormed back to $1249, giving a sliver of hope to the bulls.