- US Q3 GDP revised to +1.8% from 2.0%; market had expected steady at 2.0%
- US weekly jobless claims fall to 364,000 from 368,000; lowest since April 2008
- Italy’s Monti wins confidence vote on austerity package in Senate
- University of Michigan consumer sentiment index final 69.9 in December from preliminary 67.7
- US economic leading indicators rise 0.5% in November
- BOE’s King for European Systemic Risk Board: Growth prospects have deteriorated; market conditions have worsened; dependence on central banks has risen
- ECB’s Bini-Smaghi: QE is possible in Europe if deflation risks rise
- US house agrees to vote on two-month extension of payroll tax cut
- S&P 500 rise 0.8%; Europe up 1.0-1.4%
- US 10-year note yield falls 1.5 bp to 1.955%; Italy up 11.6 bp to 6.93%
- WTI rises $0.74 to $99.40; gold falls $11 to $1604
Quite a dull session in NY with EUR/USD basically opening at its high of 1.3080 before falling to 1.3017 briefly amid mixed US economic data (highlighted by a further drop in weekly jobless claims). EUR/USD was unable to take advantage of improved European equity markets (particularly in bank shares) after the LTRO yesterday , nor a continued recovery in US stocks and commodities.
USD/JPY ends the session in a very narrow range but is sowing a few signs of life late in the year. The 100-day moving average actually has a positive slope for the first time in nearly 18 months, perhaps a sign that the bulls may finally be taking charge. Goldman’s Jim O’Neill forecast a rise to 100 next year (as he has for the last several years…)
Expect a very muted Asian session with buyers ahead of 1.3000 and sellers between 1.3080 and 1.3100 in EUR/USD.