The US Dollar is trading lower across the board in the early US session, after very calm European and Asian ones. US GDP was released this morning showing growth at an annual rate of 4.9% in Q3, this was revised from 5.2%. The US Index remains in negative territory and is struggling to hold above 102.00.

Initial Jobless Claims increased by 2,000 in the week ending Dec 16th, the total being 205,000, which is slightly better than the market had expected. Stock market futures climbed this morning after yesterday's down day. The Dow and Nasdaq slipped about 1.3% and 1.5% respectively to notch their worst day since October. Yesterday's down day also snapped a 9-day winning streak.

EUR/USD is up on the day as risk appetite seems to be fading. Pre-holiday trading is thin with European equity markets in the red. Investors will be focused on Personal Consumption numbers that are due out on Friday. ECB President Lagarde remains hawkish on her position and plays down any chances of monetary easing.

GBP/USD is ticking higher on the day. Annual headline inflation fell sharply below 4% amid a significant decline in fuel prices. BoE policy makers may continue favoring a restrictive policy stance until price stability is reached but the market is expected to keep rate cut expectations alive.

USD/CAD is lower on the day. Strong Canadian CPI numbers and the rebound in oil prices are supporting the Loonie. The highlight of the week is Friday’s US PCE Prices Index data. This is the Fed’s favorite inflation gauge and should shed some light on any next steps.

USD/MXN is trading lower on the day. Mexico Retails Sales rose to 0.8%, a flat reading was expected. Bank of Mexico Governor Ceja continues the dovish tone on rates despite inflation being on the decline. General USD weakness is the theme of the day.