- Geithner: G20 countries must cut external imbalances below a specified share of GDP over next few years
- G20 source: Geithner asks finance chiefs to limit current account imbalances to 4% of GDP
- Senior Canadian finance official: Geithner proposal to target current account balances has merits
- Russia Dep FinMin: G20 draft communique does not mention numeric targets for current accounts
- German Ifo institute: Business climate index 107.6 in October, better than median forecast of 106.5
- China vice central banker: Wants to see more trade and investment with Asian countries in yuan
- BOE’s Sentance: In favour of gradual rise in rates to reflect turnaround of global economy, UK growth
Little net change on the morning, but inbetween we’ve seen some very extreme price volatility. EUR/USD sits at 1.3910, slightly lower from the 1.3925 I saw when I first arrived. The trading range though has been a healthy (or more like unhealthy) 1.3858-1.3970 range.
EUR/USD rallied early. BIS sold up at 1.3965/70 and we were on our way down. UK clearer also notable seller. Got eventually to 1.3882 with stops noted through 1.3880. Rumours swirled that China was on the bid at 1.3880 and we started to rally. German Ifo came out stronger than expected and in the blink of an eye we were up around 1.3925/30.
Then all hell broke loose. A Middle Eastern entity stepped in and sold EUR/USD very aggressively, catching the market very much on the wrong foot. We slumped very quickly back through 1.3900, tripped stops through 1.3880 and got to 1.3858 session low. Earlier reports had had buy orders clustered down at 1.3850/70 and they provided solid support and back up we went.
Now stops seen through 1.3840 on downside and trailing stops through 1.3940 on topside.
USD/JPY sits at 81.20, unchanged on the day. Less said the better.
USD/CHF up at .9735 from early .9690 with BIS a very notable buyer of the pairing earlier today. We got as high as .9778 before slipping back. EUR/CHF up at 1.3540 from early 1.3490.
Cable unchanged at 1.5703. After such a volatile morning, how weird is that?
