- Greece says it “does not contemplate” paying out PSI holdouts
- Greece says it will invoke CAC if participation not high enough
- Greek press reports 75-80% expected participation
- Rumors that Greek PSI will fall short of necessary 66.6%
- Officials deny rumors PSI deadline will be extended
- Four public pensions, including the police, opt not to participate in PSI
- Swiss group forms to fight PSI
- Canada Ivey PMI 66.5 vs 62.0 exp
- Ireland plays shell game with debt due to bailout delay
- ECB balance sheet hits 3 trillion euros
- Dutch political party advocates leaving euro
- Int’l powers to start talks with Iran next month
- Oil falls $1.88 to $104.86
- Gold falls $32 to $1647, below 200-dma
- S&P 500 down 1.5% to 1343 — worst day of 2012
EUR/USD started out the session at 1.3145 and uptrend from mid-January acted as resistance on a bounce to 1.3155. It then tailed lower in the early going and continued with Greece threatening default. Bids at 1.3100 held at midday and once again as stocks swooned heading into the final hour. Spot at 1.3112.
The yen was the best performer by a wide margin. USD/JPY entered the session at 81.10 on a rebound after taking out stops below 81.00 in London. As stocks fell, so did dollar-yen, slipping to 80.58 as another wave of stops were taken out at the London fix. It clawed back some losses in the afternoon, trudging up to 80.85.
AUD was the laggard but, once again, the damage was mostly done before the European close. The session began at 1.0600 and chopped lower until stops at 1.0550 were hit, sending the pair 1.0525. A 25-pip rebound was followed by a second, successful test of 1.0525, setting up a s/t double bottom.
EUR/CHF slid to 1.2047 on risk aversion. EUR/GBP at 0.8343.