- Initial jobless claims 374K vs 370K exp
- US July personal spending +0.4% vs +0.5% exp
- US core PCE +1.6% vs +1.7% exp
- KC Fed +8 vs +3 exp
- Fed’s Lockhart: further stimulus could have some positive effect
- Rajoy won’t decide on bailout until terms are clear
- Slovak PM: Sees 50/50 chance of euro breakup
- Draghi cancels appearance at European Parliament
- Hollande says key decisions to be made at Oct 19 summit
- El-Erian: Bernanke could hint at nominal GDP target tomorrow
- ECB’s Asmussen: markets are pricing in breakup of eurozone
- Australia Fin Min: RBA has room to cut rates
- WSJ’s Hilsenrath previews Jackson Hole
- S&P 500 -0.75% to 1399, lowest since Aug 7
- JPY leads, AUD lags
The Slovakian PM’s remarks landed in a market that wants to be long USD ahead of Bernanke and smoked EUR/USD. The pair fell to 1.2485 from 1.2560 in a virtually straight line. It consolidated around 1.2500 for hours but has now found some life, up to 1.2511.
Cable surged to 1.5875 after stops above 1.5855 were taken out. The run higher didn’t last long as the dollar-buying bonanza kicked off and sent cable a full cent lower to 1.5770. Edging back to 1.5794 late in the day.
AUD/USD took out the barrier at 1.0300 but found steady bids in the 1.0270/80 range and has climbed back to 1.0303.
