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EUR/USD lost fractionally last week as the Dollar proved resilient against the Euro despite EZ finance ministers finalizing the Greek bailout, while economic data for both countries came out mixed. The week began on a positive note with the rate rising after International Monetary Fund Managing Director Christine Lagarde stated, "I welcome the commitment by European partners to bring back Greece's debt to substantially below 110 percent of GDP by 2022, conditional on full implementation of the program by Greece.” The pair then sold off on Tuesday despite a tentative agreement for releasing Greece’s bailout fund was reached, however several national parliaments, The Netherlands, Germany and Finland still need to approve the deal. Also supporting the Greenback were U.S. Core Durable Goods Orders, which rose +1.5% m/m, versus an expected decline of -0.6%, while Durable Goods Orders came out with a flat reading, versus a decline of -0.6% expected, and U.S. CB Consumer Confidence printing at 73.7, versus 73.1 that was anticipated. The pair the resumed trading higher after making its weekly low of 1.2879 on Wednesday after disappointment over the Greek debt buyback and after the ECB reaffirmed its legal authority in overseeing 6000 EZ banks in the banking union after January 1^st, 2013 with full implementation of the plan scheduled for January 1^st, 2014. Wednesday economic data had U.S. New Home Sales come out at 368K, versus 387K expected.  On Thursday, the rate continued higher after positive results from an Italian 10-year bond auction, which saw the yield drop to 4.45%, its lowest level in two years, versus October’s auction that yielded 4.81%. Economic data on Thursday had U.S. Preliminary GDP increase to 2.7% q/q, versus 2.8% expected, while U.S. Pending Home Sales increased +5.2%, significantly higher than the +0.9% increase that was anticipated. The pair then made its weekly high of 1.3027 on Friday after the German parliament approved the Greek bailout deal by 473 to 100. Friday’s economic data had German Retail Sales decline -2.8% m/m, versus an expected decline of -0.3% and the U.S. Core PCE Price Index, which increased only +0.1%, versus +0.2% expected. EUR/USD went on to close the week at 1.2984, a decline of only -13 pips or -0.1% from its previous weekly close. 
 

USD/JPY gained slightly last week, adding to the previous week’s gains after the Japanese Cabinet approved an ¥880B stimulus package and the United States reported mixed economic data. The week began with the pair selling off on Monday after the BOJ’s Monetary Policy Meeting Minutes for its October 30^th meeting stated that, “based on the Prime Minister's instruction on October 17, 2012, the Government will promptly formulate economic policy measures to counter risks of a downturn that Japan's economy faces at this juncture and to accelerate measures for realizing economic revitalization.” The rate then inched up on Tuesday after BOJ Governor Shirakawa in a speech stated that a strong yen would, “hurt Japan's economy by leading declines in exports and corporate revenues as well as worsening business sentiment.” On Wednesday, the rate consolidated after making its weekly low of 81.68 as the United States reported weaker than expected New Home Sales. The pair continued trading in a narrow range on Thursday, again showing very little change after Japanese Retail Sales declined -1.2% y/y, versus -0.7% that was expected. The rate then made its weekly high of 82.74 on Friday after news that the Japanese cabinet had approved an ¥880B stimulus package that would include ¥110B for jobs, ¥95B for new businesses and ¥132B for nursing homes.  Economic releases on Friday included Japanese Tokyo Core CPI, which declined -0.5% y/y, versus -0.4% expected and Japanese Preliminary Industrial Production, gaining +1.8% m/m, versus an expected decline of -1.8%. USD/JPY went on to close at 82.45, a gain of +7 pips and virtually unchanged on the week.
 

GBP/USD gained fractionally last week as the BOE picked former BOC Governor Mark Carney to succeed Mervyn King as head of the central bank, and the UK Financial Stability report warned on the UK’s banking system. The week began on a positive note as Cable traded higher in the absence of any significant economic data out of either country. The rate then weakened somewhat on Tuesday after the BOE announced that Mark Carney would succeed Mervyn King as head of the central bank in July of 2013. Tuesday’s economic numbers had UK Revised GDP increase by +1.0% q/q as widely expected and UK Preliminary Business Investment, rising +3.7% q/q, versus +1.3% expected. On Wednesday, Cable made its weekly low of 1.5961 as UK Net Lending to Individuals fell by -0.3B, versus an expected increase of +0.9B. The pair traded higher on Thursday after the BOE’s Financial Stability Report warned, “progress by banks in raising capital has slowed and investor confidence remains low.” Also, BOE Governor Mervyn King stated that, “Since we met in the summer, sentiment in financial markets has improved a little, supported by policy actions by a number of central banks. But the underlying picture for global growth remains weak and significant adjustments in both indebtedness and competitiveness are still required in the euro area.” Cable then sold off on Friday as indecision over resolving the U.S. fiscal cliff supported the Greenback, bringing GBP/USD to close at 1.6009, showing an overall loss of -0.1% for the week.
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USD/CAD gained fractionally last week as both countries reported mixed economic numbers. The week began on a positive note, with the pair trading higher on Monday in the absence of any significant economic releases out of either country. The pair then made its weekly low of 0.9905 on Tuesday despite better than expected U.S. Durable Goods Orders.  On Wednesday, the rate made its weekly high of 0.9960 before selling off after lower than expected U.S. New Home Sales. The rate then inched up on Thursday after the Canadian Current Account showed a deficit of -18.9B, versus -18.0B expected and Canadian RMPI, which came out with a flat reading, versus an expected decline of -0.4%. The pair continued higher on Friday after Canadian GDP came out flat, versus an expected increase of +0.1%, which brought USD/CAD to close at 0.9940, with an overall gain of +0.1% for the week.