Firmer USD and weak French GDP take EURUSD to negative territory

EUR/USD

The pair finished the session in minor negative territory, weighed on by a firmer USD and also weaker than expected French advanced Q3 GDP report. Also, while the release of weaker than expected retail sales report from the UK briefly resulted in GBP underperforming EUR, the fact that the BoE is perceived to be in a more hawkish mode than the ECB meant that EUR/GBP resumed the downward trend. In terms of technical levels, supports are seen at 1.3359/45 and then at the 30-day lower Bollinger level.

GBP/USD

The release of less than impressive retail sales for the month of October, together with a firmer USD failed to weigh on the pair, which as a result of favourable rate flows against Euro equivalent finished the session higher. The ONS said that declining motor fuels sales led to fall in sales in October and mild weather affected sales of winter clothing. In other UK related commentary, BoE's Mark Carney said that he "would be prepared to raise interest rates before an election if this was necessary". While BoE's Fisher said timing of rate rise is very uncertain, adding that the BoE won’t raise rates anytime soon.

USD/JPY

The pair finished the session sharply higher after Japanese finance minister said that it is important that Japan has intervention as FX policy option. He also added that Japan must always be ready to send signal to markets to curb excessive and one sided FX moves. Aggressive and broad based JPY weakness saw the pair move back above the key 100.00 level for the first time since early September and also supported the domestic stock index, which advanced into bull market territory. In the options market, the 1m R/R touched on May highs, while touted delta unwinds after the DNT barrier level at 100.00 was erased resulted in temporary profit taking related flows. Of note, overnight also saw the release of the prelim Q3 GDP report which came in above exp. at 1.9% vs. Exp. 1.7%.