- ECB leaves rates unchanged at 1.00%; rates appropriate; economy gradually rebounding but bank lending, money supply slowing. Some lending programs to be allowed to expire next year
- US jobless claims fall 20,000 to 512,000; continuing claims decline as well
- US labor productivity soars 9.5% in Q3
- Canada’s Ivey PMI dips to 61.2 in October from 61.7 in September
- S&P 500 rises 1066.50, +1.9%
- Oil falls 0.60 to $79.82, Gold steady at $1090
EUR/USD saw some activity right around 13:30 GMT as the US reported a dip in jobless claims and a huge jump in labor productivity rates implied robust corporate profits ahead. Trichet’s comments on initiating an exit strategy at some point in 2010 briefly boosted the EUR to 1.4917 but central bank sales helped knock it back down. Interest was listless for much of the session with many sidelined ahead of tomorrow’s employment report. Central banks have staked out the ranges, buying between 1.4810/20 and selling between 1.4910/30.
Cable saw a relief rally after the BOE added GBP 25 bln to its Gilt buying program rather than the 50 bln some had forecast. Prices reached 1.6635 before settling back to trade most of the afternoon below 1.6600.
EUR/JPY was active today, sliding to 134.30 despite a strong rally on Wall Street on what looks like a one-off order. Prices spent the afternoon grinding back toward session highs at 135.05 once the selling interest was completed.
AUD/USD firmed to end the day back above 0.9100 after a quiet session. The risk trade seemed to lose some steam on Thursday with traders trimming positions ahead of the employment report tomorrow morning.
