ForexLive North American wrap: US data disappoints

Chicago PMI 60.2 vs 63.0  exp US consumer confidence 61.1 vs 68.0 exp Case-Shiller Nov home price index -3.67% vs -3.3% exp Q4 employment cost index +0.4% as expected Guardian: Greek politicians battling Troika reforms Canada Nov GDP -0.1% vs +0.2% exp US CBO forecasts $1.1 trillion deficit vs $1.3T last year Rtrs: Greek deal could come Wed but ECB contributions a sticking point Venizelos: net present value of haircut could exceed 70%, deal deadline is Feb 5 S&P 500 down 0.1% to 1312, first four-day decline since Nov. EUR lags, NZD leads Heading into the session, EUR/USD was higher on optimism about a Greek deal and upbeat German employment data. When the US data was soft, the selling started. Options expiry was cited for driving the decline further as were stops below 1.3150. EUR/USD bottomed out at 1.3042 shortly after the European close with other risk trades following the same pattern. One exception was USD/JPY, which traced out a post-intervention low on strong real-money demand. Month-end flows were evident throughout the session. USD/CAD fell to 0.9965 quickly reversed almost 100 pips after soft Canadian GDP for November.