This can be fixed by editing the keybindings for your shell. Bash by default on OS X? If so Google for ".inputrc", mine looks like this:

  # See http://www.reddit.com/r/commandline/comments/kbeoe/you_can_make_readline_and_bash_much_more_user/
  "\eOd": backward-word
  "\e[5D": backward-word  # for OS X
  "\eOc": forward-word
  "\e[5C": forward-word   # for OS X
  "\C-f": reverse-search-history
  "\C-F": reverse-search-history  # for OS X
  #Control-F: reverse-search-history
  #Control-j: menu-complete
  #Control-k: menu-complete-backward
  set bell-style none
  set completion-ignore-case on
  set completion-prefix-display-length 2
  set show-all-if-ambiguous on
  set show-all-if-unmodified on