Forex headlines for December 5, 2013:

  • US Q3 GDP (second reading) 3.6% vs 3.1% q/q annualized expected
  • Initial jobless claims 298K vs 320K expected
  • Fed’s Lockhart: Wants to telegraph plan for winding down bond buying
  • Fed’s Fisher says he would back a ‘clear path’ for QE when tapering starts
  • Draghi: May experience prolonged period of low inflation but…
  • Projections point to core CPI drifting higher
  • ECB forecasts revised
  • US October factory orders -0.9% vs -1.0% expected
  • US nondefense ex-air durable goods orders revised to -0.6% from -1.2%
  • Canada Ivey PMI 53.7 vs 58.5 expected
  • Bill Gross: ‘The Fed wants out’ of QE
  • Gold down $17 to $1226
  • WTI crude down 30-cents to $97.50
  • S&P 500 down 8 points to 1785
  • JPY leads, GBP lags

The big story on the day was the euro as it ripped to 1.3677 from as low as 1.3543 in the span of a few hours. The kneejerk lower came on GDP data but it reversed when Draghi refrained from any kind of dovish move and even downplayed LTRO chances. We finish near the highs of the day. For more on Draghi, see Ryan’s review.

USD/JPY continued with a negative bias as yen crosses broadly correct. Last at 101.76. At this point, the move is a standard correction but it could escalate into more.

USD/CAD finally made a meaningful move lower, down to 1.0625 after the kick higher on the Ivey PMI was rejected at 1.07.

The non-farm payrolls competition is open for business. Join in.