Wild Day in the FX Markets

Today was a relatively wild day for FX markets. After Q4 GDP was released, showing a very meagre 1.1% rise, the Dollar sold-off fast. The fear was/is that growth may be falling-off precipitously. A hour or so later, when a surprisingly robust new home sales figure was released, matters quickly revered. The Dollar remained firm throughout the rest of the day. The poor GDP number is being blamed on soft consumer spending, which is thought to be helped/remedied by the big housing number.

Next week Friday is non-farm payrolls.