In a session that bears an uncanny resemblance to yesterday’s London trading, the story remains the same. The US dollar has staged another rally at the expense of the British Pound and Euro. Trading conditions have been less than ideal, best characterized as choppy. Volume came sporadically, bursting at critical levels yet thinning out liquidity at other times. All told, we currently sit in the same spot as we did 24 hours ago. Following a London Session USD rally on Wednesday and a full New York reversal, traders will look to see if EURUSD can exude its resiliency in another New York rebound.

The big mover on the day has been the British Pound. While EUR has displayed notable weakness, the pressure on GBP has been relentless. In addition to overall USD buying, dovish commentary from a variety of Bank of England officials provided a second catalyst to heavy selling. Versus the US dollar, the pair fell over two big figures (200 pips) from yesterday’s NY closing rate north of 2.0800. Again, 2.0600 has provided support for GBPUSD.  EURUSD has shed over 100 pips from its pre-London high around 1.4835. USDJPY has failed to gain ground from a consolidation around 110.00. Consequently, EURJPY has spun lower with EURUSD, giving back the majority of yesterday’s late-day gains.

On the positive side, USDCHF briefly dealt above 1.1200 today, continuing its recovery. To put things into perspective, however, only one month ago it traded at 1.1600. Lastly, USDCAD has lagged the Greenback ascent, though the currency pair is positive on the day. This may stem from the robust move upward in crude oil (+2.56 to $93.18), which tends to bolster the Canadian dollar.

There is a plethora of US data to come in the morning. We would focus on the Q3 Gross Domestic Product release at 0830 EDT.

Upcoming Economic Data Releases (New York Session)

  • 0830 EDT Canada Q3 Current Account (BOP), consensus: $3.2B (relevance: medium)
  • 0830 EDT Canada Oct Industrial Product Price MoM, consensus: -0.5% (relevance: low)
  • 0830 EDT Canada Oct Raw Materials Price Index MoM, consensus: +0.4% (relevance: low)
  • 0830 EDT US Initial Jobless Claims, consensus: 330k (relevance: low)
  • 0830 EDT US Continuing Claims, consensus: 2575k (relevance: low)
  • 0830 EDT US Q3 GDP Annualized, consensus: 4.9% (relevance: medium)
  • 0830 EDT US Q3 GDP Price Index, consensus: 0.8% (relevance: low)
  • 0830 EDT US Q3 Personal Consumption, consensus: 2.9% (relevance: medium)
  • 0830 EDT US Q3 Core PCE, consensus: 1.8% (relevance: high)
  • 1000 EDT US Oct New Home Sales, consensus: +750k, -2.6% MoM (relevance: medium)
  • 1000 EDT US Q3 House Price Index, consensus: -0.5% QoQ (relevance: low)
  • 1000 EDT US Oct Help Wanted Index, consensus: 23 (relevance: low)