Forex news for December 3, 2014:

USD/JPY charged toward 120.00 despite a soft ADP report (it was leaked early). The market just can’t get enough US dollars with Treasury yields ticking higher and the unstoppable march in the S&P 500. The pair cruised through 119.50 but stalled ahead of the Aug 2007 high momentarily before eventually climbing as high as 119.87. There has been precious little profit taking since the high.

EUR/USD slipped a half-cent to 1.2325 in European trading and held around that level in early US trading but US dollar strength knocked the pair down to 1.2301. Bids at the big figure ahead of the ECB have held up so far and the pair has inched back to 1.1213. The ECB in the day ahead is huge.

Cable was perky with Osborne handing out goods ahead of the May election. GBP/USD steadily marched to 1.5719 before sliding back to 1.5686. Sterling was particular strong on the crosses, especially EUR/GBP.

The Bank of Canada talked about a smaller output gap and that overwhelmed a good ISM non-manufacturing report released at the same time and sent USD/CAD down to 1.1350 from 1.1400. Weakness in oil late in the day wasn’t acute enough to grab the market’s attention.

The Aussie, on the other hand, tracked back toward the post-GDP lows and hit 0.8400 from 0.8445 at the start of US trading. The overnight low of 0.8388 is in focus.