AUTOREFRESH 
New York forex wrap-up: Risk goes, then comes
- Bank analyst Merideith Whitney expects Goldman to beat estimates tomorrow
- Geithner: Confident government has the resources to deal with CIT
- Russia uses oil price of $54 for budgeting purposes for 2010
- Bank of Canada survey: Business outlook upbeat
- Bank of England’s Bean: Nine months before we know if QE policies were successful
- US June fiscal deficit $94.3 bln versus $33.5 bln June 2008 surplus. Year to date deficit exceeds $1 trln
- S&P 500 rises 2.4% to 900
- Oil falls to $58.30 before rebounding to end just below $60.
There was a flurry of risk aversion early in the US session as jitters over the fate of small-to mid-market lender CIT was a concern for the market. Reassuring comments from Treasuries Geithner helped settle the jitters and comments from bank-bear Whitney that Goldman Sachs would beat forecasts helped brighten the mood considerable. After failing to close below key supports in the 875 region late last week, the S&P rebounded on short-covering today, and helped drag the “risk trades” in the FX world higher. GBP recouped it’s overnight weakness, ending at 1.6230. EUR/USD brushed 1.4000 late from 1.3911 early in the day.
USD/JPY reached 93.00 and EUR/JPY, 130.15/20; AUD ended on its best levels of 0.7831. The market was a one-trick pony today, I’m afraid.
Goldman earning before the open in NY tomorrow will be the early focus before US retail sales numbers.
And Ms Whitney also said she thought the US unemployment rate may rise to 13%.
I guess that’s for another day.