The euro opened in New York (8:30 am) 1.2448 having been pushed higher from the early Europan low of 1.2385 to 1.2465 about 90 minutes before the U.S.open by a short squeeze that had accelerated at 1.2420 and then 1.2440. The modest pressure came from traders looking to reduce positions headed into the year end as well as finding some demand on the news that a total of 39.758 billion euro of 3 year LTRO's will be repaid on December 17th.
The early part of the US session saw a rise to 1.2477 on weaker than expected November PPI (-0.2% vs -0.1%) followed by sharp dip to 1.2333 after the much stronger than forecast November Michigan Consumer Confidence data (93.8 vs 89.5), with both 1 and 5 year inflation expectations revised higher.
Crude oil continued its plunge, WTI ended $57.45, down $2.50, undermining both equities and Treasury yields. Teh Dow lost 315 points closing at 17,280, off 3.8% on the week. The 10-year bond lost 8 basis points closing at 2.08 percent and pressured the dollar lower. The day's high 1.2485 came just at the European close.
The afternoon saw a slow decline to a range around 1.2450 with a few short-lived drops beneath, closing at 1.2462.