- In a television interview Ben Bernanke said that whilst more than $600 bln QE was certainly possible, it was an ongoing policy option.
- Unemployment rate at 9.8% remains a concern
- Fear of inflation greatly exaggerated
- ECB’s Noyer: Financial market’s fears about Ireland will ease
- ECB’s Nowotny: Amputation of states from EU would have massive disadvantages
- Spain’s Salgado: Will not use international bailout mechanism
- Disagreement inside EU on E-bond plans
- Australian TD-MI inflation gauge +3.9% YoY
- Australian job ads +2.9%
- Bernanke: Low CNY bad for US and China
- Regional stockmarkets broadly unmoved, Gold +0.5% at $1412/oz, Oil $89/bbl
EUR/USD closed in NY at 1.3410 and we have spent the Asian session consolidating the big move higher after the NFP data. Fears in the market that Ben Bernanke would announce a much more aggressive QE2 amounted to little and these USD shorts were forced to cover. Additionally, talk of more disquiet within the EU kept the EUR heavy on the crosses. Ranges: EUR/USD 1.3334/1.3420, EUR/CHF 1.3027/95
Most of the movement happened in the EUR with most of the other currency pairs trading in 30 pip ranges. USD/JPY found support in early trade from talk of decent bids ahead of 82.50. Strong bids were also reported in the EUR/JPY around 110.40. Ranges: USD/JPY 82.59/92, EUR/JPY 110.53/111.08
Cable and USD/CHF were quiet with most movement in the crosses. Ranges: Cable 1.5738/74, EUR/GBP .8472/.8511
AUD/USD was unaffected by either the jobs or inflation data and has drifted lower ahead of good sized offers towards .9950. Ranges: .9865/.9926.
