- Boehner: No substantive progress in two weeks of talks
- Initial jobless claims 393K vs 390K exp
- US Q3 GDP (second reading) 2.7% vs 2.8% exp
- Canada Q3 current account deficit $18.9B vs -$19.3B exp
- Fed’s Dudley says level of joblessness unacceptable, more QE being weighed
- US pending home sales +5.2% vs +0.8% exp
- Moody’s sees meager EU growth next year
- Bearish euro commentary from you-know-who
- ECB’s Asmussen: Inflation fears are unfounded
- EUR leads, AUD lags
If it wasn’t already, it became clear today that there is one thing on the market’s agenda — the fiscal cliff. Risk trades started well on signs the White House was willing to compromise on taxes. The hgihs of the day came after a strong report on pending home sales.
Sentiment later reversed after Boehner’s comments then recovered as the rift was downplayed by others.
EUR/USD spiked to 1.3014 and then tumbled to 1.2945 within two hours. Bids ahead of 1.2940 held the line and the pair is trading around 1.2965.
USD/JPY tested below 82.00 but has bounced back in a relatively low volatility session.
AUD/USD slid to the low of the week at 1.0416 but bids ahead of 1.04 continue to catch the falling knife.
Gold made a modest comeback from yesterday’s drop, up to $1727.
