* US Q2 GDP left unrevised at -1.0%. Sales up to 0.4% from down 0.2%
* US Jobless claims fall to 570k from 580k
* Fed’s Lacker says that economic outlook is improving, recovery likely to be slow and uneven.
Well that was a session of two halves if ever I saw one. The US session started off with a very muted response from Stocks and Currencies from th better than expected US GDP revision. This encouraged the risk off crowd to pile in selling Stocks and pushing Eur/Usd down. In hindsight it was noticeable that even with stocks at their lowest level since Friday’s Bernanke inspired rally, we couldn’t match yesterday’s low in Eur/Usd, hitting 1.4218. Stocks little by little recovered dargging Eur/Usd back to safety at 1.4270. Then all hell broke loose as weak short ran for cover firstly on the break of 1.4280 and then on the break of 1.4350, pushing the pair up to 1.4408 at the peak, before slowly meandering down to 1.4360.
Cable price action was pretty similar but not as pronounced as Eur/Gbp continued its ascent boosted by M&A rumours. Like yesterday Cable once again ran into bids at 1.6160, before gradually returning to 1.6200 before the late afternoon fireworks pushed it to as high as 1.6306.