- ECB’s Gonzalez-Paramo: Details on sterilization of bond buys next week.
- US weekly jobless claims fall to 444,000; slightly higher than expected
- Portugal unveils deficit reduction package, about 50/50 tax hikes and spending cuts. Deficit projected at 7.3% this year, 4.6% next year.
- Deutsche Bank CEO Ackermann says he doubts Greece can pay debts.
- US sells $16 bln in 30-year bonds at 4.43%, bid-to-cover 2.60
- S&P 500 falls 1.2%, DAX rises 1.2%; gold eases to $1232; oil falls $1.75 to $73.85
EUR/USD traded with a heavy tone throughout the session spending most of the day capped in the 1.2590 area. Talk of Chinese bids were heard in the 1.2540/50 area and much of the day was spent ranging between 1.2540 and 90, no surprise.
Prices turned lower late in the session as US equities accelerated intraday losses and the euro ended on its lows, around 1.2530. Less than a week after a “trillion dollar” package to save the euro, the euro trades 20 pips above spike lows made during a 10% crash in the S&P a week ago today.
Cable had a rough day as well. It broke the range of its recent base at the 1.4720 level and fell back all the way to 1.4610 where it met Asian demand. Poor UK trade figures were the fundamental excuse used for today’s slde.
USD/JPY spent the session in narrow 92.60/92.95 ranges. Traders reported heavy offers being lowered to the 93.00 area after overnight weakness in USD/JPY.
Attempted to rally in Europe and again in the US but was unable to hold gains near 0.9025. We end not far from session lows at 0.8960.
