- Bernanke: outlook “uncertain”, focused on downside, watching closely
- Bernanke: No mention of forthcoming QE in statement
- SNB’s Jordan: Will enforce peg with “utmost determination”
- Spain announces bank reform plan
- Initial jobless claims 367K vs 371K exp
- Non-farm productivity Q4 +0.7% vs 0.8% exp
- BOE’s Posen: Sees a case for more QE
- Fed’s Evans: QE3 likely “only when conditions are somewhat different”
- Fitch: Eurozone crisis to last another 12-18 months
- ECB seen buying Portuguese bonds
- Greek fin min: official participation is final PSI hurdle
- Schaeuble: No official money for Greece
- Papademos to meet coalition Fri/Sat on Troika austerity reforms
- Rehn: Greek deal very close
- S&P 500 +0.1% to 1325
- NZD leads, GBP lags
It was a typically slow pre-NFP trading day with every major set to close within 15 pips of yesterday’s close.
EUR/USD hit a session low of 1.3086 at the start of US trading but climbed from there as European leaders continued to assert that a deal is close. We hit a high of 1.3197 at the London fix but heavy orders at 1.32 capped the gains.
Cable tracked down throughout the day, declining for just the second time in 14 sessions. Dovish comments from Posen pushed the pair below 1.5800 and it continues to flirt with that level.
Gold got a lift as Bernanke’s comments crossed, hitting above 1760 twice but failing to hold the gains. Ben’s comments didn’t add any fuel to the QE fire but lately gold bugs haven’t needed an excuse.
EUR/CHF drifted back to 1.2040 as real money continues to sell but Jordan helped EUR/CHF back to 1.2056 as he continued to reiterate the peg.
