Stops are cascading in cable, USD/JPY and USD/CAD as the US dollar catches a big bid in a thin market late in the week.
Cable is down a half-cent since North American traders arrived and has fallen to 1.5648. There is said to be good demand at 1.5626 and just ahead. That’s the low from Monday.
There is talk of ECB buying in EUR/GBP as a driver.
The Canadian dollar, meanwhile, is trading like a proxy for oil despite a multitude of good economic indicators this month — including jobs, retail sales, CPI, manufacturing sales and today’s GDP data.
USD/CAD sank as low as 1.1362 on the GDP numbers but has soared all the way up to 1.1441 as the market looks ahead to softer numbers because of lower oil.
Finally, USD/JPY is challenging Monday’s high of 118.58. Beyond that is the Nov high of 118.98. I talked about buying the dip in USD/JPY on Wed but just missed it.
