- Germany open to Spain precautionary credit line
- …or not
- Talks between Greece and Troika collapse
- …or not
- US Sept CPI +2.0% y/y vs +1.9% exp
- US industrial production +0.4% vs +0.2% exp
- NAHB builder sentiment at 6-year high
- S&P downgrades province of Barcelona to BBB- from BBB+; outlook still negative
- Citi CEO Pandit quits/fired
- Canadian Aug manufacturing sales +1.5% vs +0.5% exp
- Slightly better Italian deficit numbers
- S&P 500 up 1% to 1455
- EUR leads, NZD and CAD lag
The thing about trading on rumors is that they don’t always come true. The euro climbed to 1.3060 on the Spanish talk and fixing interest but slid on the Greek chatter. After dipping back to 1.3014, the euro has climbed to 1.3047 on positive risk sentiment.
USD/JPY rallied to the highest since mid-Sept, taking out the 78.87 high from early Oct. It wasn’t exactly off to the races from there with a mountain of offers at 79.00 capping the rally. Last 78.90.
Cable started US trading with a swift rally to 1.6132 from 1.6077 but that was the full range of the day.
The Canadian dollar clued in to yesterday’s less hawkish comments from BOC Governor Carney and took a beating in early trading, especially against the euro. Light interested on the order books with USD/CAD at 0.8968.
Gold bounced $10 to $1747 after three days of losses.
