The NY session witnessed some rather choppy price action as the lack of economic data and approaching holidays made for some thin markets. Equities slipped a modest -0.3% on the day as Fed Chairman Bernanke came out on the dovish side. The most glaring comments were that there are still ''significant headwinds'' to growth and that any Fed audit would be ''bad'' for the dollar. This saw both stocks and the buck selloff simultaneously. Given that these two have seen a -95% correlation all year, this was a rather unique event.

EUR/USD popped to a session high near 1.4890 on the back of Bernanke's comments but slipped back towards 1.4830 as the session came to a close. The pair has managed to close above the Ichimoku cloud after testing into it in the last two days. This metric now drops to 1.4808 and we will be closely monitoring this level overnight. USD/JPY continued to track Treasury yields and the more than -4 basis point drop in the US 10-year helped nudge the pair lower. It would eventually rest near 89.40/50 after an open just above the 90 level.

Gold bulls witnessed a NY session renaissance. While the precious metal did end up down -$4 on the day towards $1158, it recovered mightily from a NY open around the $1140 zone. There was talk of some sizeable stop loss orders building into $1135/30 and thus we would expect formidable support should we venture there again. Furthermore, seasonal trends suggest we could have seen the typical late-November/early-December correction and that gold could still be on its way to $1300 by the end of the year.