- RTRS: ECB considering sovereign yield band
- Core durable goods orders -3.4% vs +0.7% exp
- MNI: Greece could be “temporarily” exiled from euro
- Bernanke defends QE in letter
- Spanish Deputy PM: Spain not in talks for aid with euro zone
- Spanish Deputy PM: No knowledge of when ECB may lay out bond buying plan
- Isaac looks less threatening
- Belgian business sentiment -11.8 in Aug vs -11.3 prior
- The latest CFTC positioning data
- S&P 500 gains 0.6% to 1411
- On week, S&P 500 down 0.5%
- CAD leads, EUR lags
The euro fell to the low of the day (1.2481) in the first hour of trading. The soft durable goods orders report raised expectations for QE3 and hurt the dollar. In addition, the bond-yield cap idea that was floated in Der Spiegel to start the week resurfaced in a Reuters report, boosting EUR/USD as high as 1.2561. As the day wore on, the euro slipped back to 1.2510. Choppy day.
USD/JPY continues to slowly (very slowly) eat into the post-FOMC minutes declines. The pair climbed marginally above Thursday’s high to 78.72. A quiet day in the bond market meant minimal volatility.
Cable trended lower for the second day after large gains early in the week. The close will be near 1.58 and it will be interesting if that level can hold at the weekly open.
AUD/USD hit small stops down to 1.0375 in early trading but the yield-cap chatter boosted risk assets, with AUD/USD climbing back to 1.0429 and then drifting back to 1.0409.
Gold $1669. Oil $95.93.
