- Initial jobless claims 367K vs 370K exp
- US Aug factory orders -5.2% vs -5.8% exp
- Canada Ivey PMI 60.4 vs 59.0 exp
- Guindos: Spain doesn’t need a bailout at all
- Draghi: growth risks on the downside, no discussion of rate cut
- Draghi: Greek debt rescheduling would be monetary financing
- EU official denies talk of first-lost insurance for Spanish bonds- DJ
- EU said to doubt Spain’s 2013 deficit-cut target: Bloomberg
- IMF: No timetable for Greek talks, no rush to payout aid
- BOC’s Macklem reiterates hawkish bias
- Dodd-Frank could hit forex
- US same-store sales soft
- FOMC says may scrape forward guidance for numerical target to trigger rate shift
- Gold hits highest since Nov 2011
- S&P 500 rises 0.7%
- US bond yields firm 5 bp to 1.668%
EUR/USD got a lift through 1.3000 on the combination of a Mario Draghi reporting the ECB stands ready to support Spain “today” and US equities rallying on improved prospects for a Romney presidency after the former governor bested President Obama in last night’s debate. We stalled near the 61.8% retracement of the drop from around 1.3170 to 1.2800 at 1.3030 before edging slightly lower after the FOMC minutes.
Oil prices rallied sharply today with the market deciding to take notice of unrest in both Iran and the squabble along the Syria/Turkey border. AUD/USD was a winner, rising more than a cent from 1.0070 support before stalling after the FOMC minutes. USD/CAD slipped back to end around 0.9800 from 0.9875 earlier.
USD/JPY was volatile, slipping back below 78.50, tripping stops and falling as low as 78.30 before rebounding to end the day at 78.45.
