- US Jan durable goods orders -5.2% vs -4.8% exp
- Cap goods orders non-def ex-air +6.3% vs +0.0% exp
- Bernanke says significant majority of committee favors current policies
- Draghi says ECB is ‘far’ from an exit
- US pending home sales +10.4% y/y vs +8.2% exp
- EU trade chief says euro “not at a forbidding level” for exporters
- Japan’s Abe to make formal BOJ nominations Thursday – Jiji
- Eurozone govts discussing ways to help Portugal and Ireland to return to markets
- US sells 7-year notes at 1.26%, as expected
- Sequester erodes US AAA-rating – Fitch
- Latest Bill Gross investment outlook
- S&P 500 up 1.3% to 1516
- EUR leads, JPY lags
Risk assets snapped back today, especially late in US trading. Bernanke and Draghi were both dovish plus US economic data continues to point to better days ahead. There was also chatter that Italian worries are overdone.
There was a strong bid in the yen crosses after USD/JPY dipped to 91.20 and challenged yesterday’s low. The low held and it was immediately higher from there. A few hours of consolidation under 92.00 ended with a flurry of buying up to 92.40. Last at 92.20.
Aside from JPY, the US dollar was broadly weaker. EUR/USD was choppy but pushed to 1.3140 from 1.3100 early in the afternoon.
Cable climbed steadily to 1.5180 but fell hard to 1.5120 in late European trading before rebounding to 1.5160.
USD/CAD slumped for the first time in 9 days, declining to 1.0230 from 1.0270 in early US trading. Corporate order borads show heavy offers lined up around 1.03.
Gold had a rough ride, slipping $17 to $1596.
