- US trade deficit swells to $36.5 bln in September; exports up 2.9%, imports up 5.8%
- Canada posts September trade deficit of C$ 927 mln
- ExxonMobil CEO: Weak dollar adding $20-25 to crude prices: CNBC
- ECB’s Weber: Banks have yet to see all burdens on their balance sheets
- Credit growth in China risks big write downs: Weber
- University of Michigan consumer sentiment index falls to 66.0 from 71.6 in preliminary November data.
- Chicago Fed’s Evans: Two more quarters of rising unemployment; policy to remain accommodative
- US launches trade probe into Chinese copper pipe dumping
- S&P 500 rises 0.6% to 1093.50
EUR/USD slid as low as 1.4826 after US consumer sentiment slipped in October and Weber warned on a growing credit bubble in China and that European banks had not ‘fessed-up to all their toxic assets. We quickly recovered from those levels and managed to overcome session highs at 1.4901 within an hour of making session lows. Prices squeezed higher through early afternoon in New York, reaching 1.4935, retracing 50% of the 1.5061/1.4822 decline.Prices drifted below 1.4900 in light afternoon trade to stop out some late-comers to the long trade but ended up at 1.4917. Traders report talk of 1.48/1.51 DNTs in the market and price action would certainly back that up.
AUD rebounded strongly in US from 0.9260 to 0.9340, proving once again that outside day key reversal rarely follow-through in forex markets these days.
Cable ends the session near 1.6700, reversing Thursday’s weakness.
Hopes for a breakthrough with China on revaluing the Yuan were downplayed today, a macro negative for the dollar.
