New York Session – December 22, 2010 4:01 PM

The U.S. pared losses after trading lower earlier in the session. Gains in the euro following the reported pledge by China to support the Euro zone were not sustained as EUR/USD fell back towards its 200-day sma and is currently trading around 1.3095. Key economic data out of the U.S. mostly disappointed. Third quarter final GDP was revised slightly higher from the prior estimate of 2.5% showing the economy expanded 2.6%, however this was lower than the 2.8% growth the market was looking for. 3Q personal consumption missed expectations of 2.9% with a disappointing print of 2.4% (prior 2.8%). November US existing home sales was a negative surprise showing sales of 4.68M vs. expected 4.75M (prior 4.43M) for a MoM change of 5.6%. The only bright spot in the data was a better than forecast October house price index that rose +0.7% while the market was anticipating a decline of -0.2% (prior -1.2%). Full text »

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