- US trade deficit contracts to $38.7 bln in October from $44.6 bln in Sept
- US import prices rise 1.3% in November
- Canadian trade deficit falls to C$1.7 bln in Oct from C$ 2.3 bln in September
- University of Michigan consumer sentiment rises to 74.2 in (preliminary) December from 72.9 in November
- Trichet: Bank support must be maintained
- US budget deficit a record $150 bln for a November
- US 10-year note yileds rise to 3.30%
EUR/USD fell in early US trade as bond yields rose and and spreads between German and PIGS debt widened. Gold tested its lows for the week in the low $1370s as well.
We slipped as low as 1.3178 but did not stay down there long as short-term specs scrambled to cover shorts quickly once bids began to stiffen. Traders have been caught short several times below 1.3200 this week and wanted to avoid that fate today. We rebounded to 1.3245 before stalling out. We head into the close around the 1.3225 level.
USD/JPY barely budged despite firmer US yields, spending the US session in a modestly firmer range between 83.80 and 84.00.
AUD lost London gains and we end the session at the familiar 0.9850 level. Traders await Chinese data over the week but were relieved by tightening of reserve requirements today, assuming that move was in place of a rate hike.
USD/CAD continues to waste traders time in close proximity to 1.0100.
GBP/USD shed gains made in London, falling back 1.5757 as the euro slumped during the US morning but recovered to end at 1.5805.
Have a restful weekend, all.
