Euro Strenghtens

EUR/USD

EUR strengthened in the early part of the session, as EUR/AUD rose on the back of AUD weakness and European bourse strength on EU’s Juncker comments regarding further investment in the Eurozone. Furthermore, markets then digested ECB source comments, which said the ECB prefer additional time to assess current measures and QE is the 'only option left' if new measures are needed. As a result EUR/USD was trending higher heading into the host of US data, which, with most numbers seeing a negative bias on expectations, weighed on the US Dollar Index and thus supported EUR/USD to reach fresh session highs at 1.2517. Notably, there was a large option expiry at 1.2500 for the New York 10am cut, which was attracting the pair through the second half of the session. Heading into the close EUR/USD consolidated above 1.2500, and looking ahead the host of German regional and national CPI number will draw focus.

GBP/USD

The notable event for the pair, UK Q3 GDP (0.7% vs. Exp. 0.7%), was largely ignored as the number met expectations, despite UK net trade contribution cutting 0.5pts off Q3 GDP, the services counteracted this coming in at its highest level since March. However following this number the pair printed its session low at 1.5679, continuing its earlier trend, although, this move lower was short lived. Notably, RANsquawk sources reported GBP/USD tripping stops to the upside at 1.5750, with EUR/GBP still under pressure following earlier talk of real money selling in the cross. The aforementioned disappointing prints for the likes of US Personal Income (0.2% vs. Exp. 0.4%) and Chicago PMI (60.8 vs. Exp. 63.0), and the resulting around 0.25% decline in the USD-index saw the pair print its session highs above the 1.5800 handle at 1.5806. GBP failed to consolidate above this level and heads into the European close trading just below this key handle, but well above the 1.5700 level broke earlier in the session. Looking ahead, price action is likely to be muted with the US closed for Thanksgiving, with no notable UK or US data points for participant to digest, although BoE’s Carney is due to speak.

AUD/USD

AUD/USD staged a modest rebound off its 4-yr RBA Lowe inspired lows overnight, reaching an overnight high at 0.8565 in the process. However, modest gains were erased during the European session after AUD/NZD moved below its 200DMA and the 1.0900 handle after triggering stops. This saw the pair move past the 0.8500 handle to the downside, initially consolidating below. The theme of the afternoon, poor US data, saw the pair retrace some of its earlier losses, reaching a European session high at 0.8530, falling short of reaching its previous levels. Heading into the close the pair has firmly consolidated back above the 0.8500 handle. Looking ahead, Chinese industrial profits could offer price action overnight, but the lack of activity in the US with trade closed for a market holiday could keep volumes suppressed.