- ISM manufacturing index rises 55.7 in October from 52.6; employment index reaches 53.1
- US pending home sales index rises 6.1% in September; eighth-straight rises
- US construction spending rises 0.8% in September; stronger than expected
- JP Morgan composite global PMI rises to 54.4 from 53.0; highest in 39 months
- Fed banking supervision chief Greenlee: Credit losses continue to rise, especially commercial real estate
- SNB’s Jordan: Now is not the time to end easy monetary policy
- Fed hauls in bank CEOs for meeting on compensation
- Obama; Economy pulling back from brink; focus on new model for job creation
- S&P ends up 0.65% after volatile session
- Gold holds most gains; rallied $20 even before strong ISM; ends at $1059; oil +$1.10 at 78.10
The US opened the trading day with EUR/USD around the 1.4775 level, up on the session after prices probed 1.4680/85 and subsequently rebounded. Prices broke to the topside after a triple-play of US data. ISM, pending home sales and construction spending all surprised to the upside. We firmed as high as 1.4845 before stalling on sales from an Asian central bank (reportedly taking profits after buying this morning below 1.47).
Equity prices ripped higher after the data this morning along with the risk trade but they began to fade early in the afternoon. The S&P rose over 15 points early before turning lower, sending the market from risk-loving to risk-averse in the blink of an eye. EUR/USD dipped below NY lows of about 1.4740 to the high 1.4720s before stabilizing. A rebound to 1.4770 was sold into by US accounts late in the day.
GBP/USD tracked EUR/USD in New York trade after weakening in Asia and London. Fears of more QE and uncertainty over the UK banking landscape amid talk of breakups are weighing on the pound.
Risk-on/Risk-off accounted for commodity currency trade in New York. AUD saw some pre-RBA profit-taking; perhaps a case of cold feet in case the RBA fails to follow-up its October rate hike. It ends around 0.9010 after a dip below 90 in late New York afternoon trade. 0.9110 was the intraday high.
USD/JPY: Another risk-on/risk-off victim. USD/JPY ramped up to 90.70 after the US data only to fade to the 90.40s as risk appetites shrank.
We are wrapping up a touch early today to do some technology training for a new feature to launch in the next week or two. Stay tuned…
