- Trichet at BIS meeting: Talk of capital flows but no talk of currencies, carry trades; global growth a bit better
- Kraft launches hostile GBP 10 bln cash and stock for Cadbury; bid smaller than hoped
- ECB longer-term refis this week will be fixed at 1%
- Conference Board employment trends survey: 89.3 in October from 88.7 in September; employment slide should end in early 2010
- Trichet whacks Greece for lousy statistics-gathering, budget bloat
- US sell $40 bln 3-year notes at 1.404%, bid to cover 3.23 times; very well received
- Fed senior loan officers survey: Loan demand weak
- Fed: 9 out of 10 banks told to raise capital after stress test have concluded raising capital; GMAC getting additional TARP funds
- S&P 500 approaches 2009 high, closes up 2.2%, at 1093. Dow at new 2009 high
- Gold sets new record high at $1110 before easing to close at $1103; Oil up $1.85 to 79.29
- Bond yields ease; 10 year note falls below 3.50% despite weak dollar, to 3.48%
The euro opened the US session on firm footing after the weekend IMF comments and lack of dollar concern from the G20 put the risk trade back in play. EUR/USD managed one push to as high as 1.5020 in New York but prices stalled there amid talk of heavy offers from the 1.5025 level with offers from China heavily rumored. Dips were shallow, only into the 1.4980s. Small trailing stops are clustered near 1.4965/70 near-term.The EUR was unable to build on very strong stock market performance today.
The US dollar index dipped below its 2009 low at 75.085 in early US trade but saw little follow-through to the downside. A break of 75.25 intraday resistance will signal a short-term bottom in that increasingly closely-watched index.1.5061 trend highs is the topside objective near-term.
Cable spiked up to 1.6843 in London morning trade but gave back some of those gains during the US session. The pullback held above 1.6693 support (the old highs broken earlier today) and prices bounced to the 1.6760s in the afternoon before stalling.
AUD/USD was well supported by the ravenous risk appetite but fell short of overcoming trend highs at 0.9325/27.
USD/JPY ended firm, supported by the risk rebound. 89.70 provided support on dips while 90.25 is resistance near-term. We end just above 90.00.
USD/CHF held above its trend lows at 1.0030, consolidating losses after reaching a 1.0052 low in today’s trade.
