- Fmr Greek PM Papademos says preparations being considered for Greek exit
- Merkel and other shoot down eurobonds
- China CIC official criticizes European response to crisis
- Tsipras: rejecting bailout program won’t mean euro expulsion
- US existing homes sales 4.62m vs 4.61m exp
- Richmond Fed +4 vs +11 exp
- Eurozone consumer confidence -19.3 vs -20.5 exp
- EU Summit likely to discuss ESM funds for banks
- EFSF funds approved for Greek banks
- Belgian consumer sentiment at 7-month high
- EU’s Rehn says eurobonds require medium/long-term planning
- Russian central bank diversifying into CAD
- Egan Jones downgrades Spain two notches
- Fitch says LTRO3 growing more likely
- Discount rate minutes show 10 of 12 voting for no change
- Oil down nearly $1 to $91.66 as Iran nuclear deal reached
- S&P 500 +0.05% to 1317
- USD leads, NZD and AUD lag
The market was holding together until Europe closed. Shortly afterwards, the euro fell to a session low and from there it was straight down to 1.2658. The final kicker came from Papademos but the market was looking for the exit before his comments hit.
USD/JPY challenged offers at 80.00 throughout the morning and finally broke though to 80.15 but as sentiment deteriorated, it was right back down to 79.95 ahead of the BOJ decision.
Cable found a bid in US trading, sending the pair to 1.5820 but the market U-turned back to 1.5770 and then down to 1.5740 at the day’s end, ahead of bids at 1.5735.
The early fall in AUD was the market’s tell today. AUD/USD cilmbed as high as 0.9935 in Europe but the bounce that began yesterday was slowly snuffed out and the pair touched a 2012 low of 0.9787 near the end of the day.
Gold was choppy, climbing to $1590 then plunging to $1561.
