- US PPI rises 0.3% in October; core falls o.6%; weaker than expected
- US TIC data: Foreign inflows reach $133.5 bln in September
- US industrial production rises 0.1% in October; Capacity use 70.5%; weaker than expected
- Fed to scale back discount window lending to 28-day maximum from 90-day maximum as of January
- ECB’s Stark: Phasing out liquidity measures over time.; not needed as much as in the past
- Moody’s France’s AAA rating weakened by borrowings but not threatened
- Fed’s Lacker: Fed watches dollar to the extent that it impact inflation, employment
- ECB’s Trichet: Fully aligned with Bernanke analysis on dollar
- Fed’s Pianalto: Worst over but not out of woods yet
- GM to slash European workforce by 10,000
- Geithner: China will reform economy, currency over time
EUR/USD fell as low as 1.4809 at midday in New York as traders tried to push prices below the options barriers at 1.4800. It was not an epic fail, but it was a failure nonetheless, with prices recovering as high as 1.4875 in afternoon trade. Stops are perched now above 1.4900/10.
EUR crosses were sold off with EUR/USD this morning but recovered lost ground in quiet afternoon trade.
USD/JPY rose as high as 89.53 as greenback shorts were covered. Dips were shallow as EUR/JPY bounced modestly with EUR/USD. USD/JPY ends at 89.30.
USD/CAD popped above 1.0600 as first reports of an earthquake off British Columbia were reported. There was little damage and USD/CAD slipped back to 1.0511 late in the day.
Bottom line today: The failure to break below 1.4800 risks another reversion to the middle of the 1.48/1.5150 range..
