Forex headlines for December 10, 2013:

  • JOLTS job openings hit 5-year high at 3925K vs 3895K exp
  • US Oct wholesale inventories +1.4% vs +0.3% exp
  • NIESR Nov quarter UK GDP estimate +0.8% vs +0.7% in Oct quarter
  • November US NFIB business optimism index 92.50 vs 91.60 prior
  • US Redbook weekly sales -1.5% m/m
  • Lagarde: ECB should act to stop inflation dropping further
  • US Senate’s Mikulski says she is “cautiously optimistic” that a budget deal has been reached
  • Bank of Canada sees pick up in housing market and debt as temporary
  • ISM sees US growth continuing in 2014
  • Gold gains $23 to $1263
  • WTI crude up $1.10 to $98.44
  • US 10-year yields down 4 bps to 2.80%
  • S&P 500 down 6 points to 1802
  • AUD leads, USD lags

A number of banks came out with recommendations for US dollar longs in 2014 but that certainly wasn’t the trade on Tuesday. The US dollar lost ground against virtually everything on the day, despite more (albeit minor) data that points to a taper next week.

EUR/USD busted through buy stops above 1.3770 all the way to 1.3795 before offers at the big figure ahead of the 1.3830 cycle high capped the move. The euro wasn’t able to hold the gains for long and it’s back down to 1.3765.

USD/JPY posted most of its declines in Europe and Asia but traced out a session low in the US morning and then another in the afternoon, touching 102.58. Both resulted in bounces and the pair is at 102.78.

Cable traded inside the European and Asian ranges from 1.6420 to 1.6450. A minor wedge is forming so keep an eye out for a short-term breakout.

USD/CAD was lower for the fourth day and is wrapping up the day near the lows at 1.0602. Similar story in AUD/USD as it creeps up to 0.9167. The commodity currencies have completely disconnected from stocks.

Gold might be the big story as a big buy order caused a flash smash up to $1262. After some consolidation, it touched as high as $1268, breaking the recent range.