- Draghi warns about soft economy after holding rates
- US initial jobless claims 370K vs 380K exp
- Monti survives in narrow confidence vote
- US household debt dropped at 2% annual rate in Q3
- IIF: Greek debt buyback raises fears of more European debt subordination
- Canadian Oct building permits +15% vs +2.6% exp
- Canada Ivey PMI 47.5 vs 58.2 exp
- Republicans block Senate vote to lift debt ceiling
- AUD/USD touches 10-week high
- 52-week highs in German/French stocks
- S&P 500 +0.33% to 1414
- NZD leads, EUR lags
Draghi torpedoed the euro saying growth will be slow and hinting at rate cuts. Cascading stops knocked more than 100 pips from EUR/USD in US trading. The bleeding didn’t stop until bids at 1.2950 finally held.
The pound was resilient for a time but eventually rolled over, accelerating through 1.6080 and down through the 55-day to 1.6040. More stops below 1.6020 with bids at 1.6010/00.
AUD/USD touched a 10-week high, popping stops above 1.05 but the gains were fleeting and it sank back down to 1.0470.
Plenty of trades that seem like oddball positioning moves to me. I suspect a volatile non-farm Friday.
