- Chicago Fed national activity index -1.08 in October from downwardly revised-1.01 in September
- US existing home sales leap 10.1% in October; highest since February 2007
- Canadian retail sales rise 1.0% in September; ex-autos up 1.1%
- Trichet: Exit strategy to be discussed at December meeting; exit to be gradual, timely; Strong dollar important to international community
- Brazil finance official; May add to measures to weaken BRL
- Mexico downgraded to BBB by Fitch
- US sells $44 bln 2-year notes at 0.802; bid-to-cover 3.16
- White House: considering expanding stimulus; reviewing ‘sensible” options
- S&P 500 rises 1.3%, below best levels of the day; Dow makes 2009 intraday high
- Gold reaches fresh record at $1173.50
New York was unable to extend the dollar slide (sparked in part by Bullard’s comments) meaningfully today despite a very strong US housing market report. Typically, the risk trade would have seen the dollar fall as commodities and equities rose, but there was little fresh ground seen today, leaving currency bulls frustrated. EUR/USD rallied to 1.5001 after overcoming London’s 1.4990 highs. Dips were astoundingly shallow in EUR/USD despite the limited upside. 1.4960 contained pullbacks. Small stops are seen in the 1.4950s, traders report.
EUR/JPY managed a rally despite EUR/USD topside proving tough to come by. The cross reached 133.60 intraday, helping push USD/JPY as high as 89.19. Kampo bids were rumored in the 88.60s earlier in the day, traders reported.
Cable traded firmly along with EUR/USD this morning, stalling just short of 1.6650.
AUD/USD topped out at 0.9277 after the strong home sales data this morning. It spent the balance of the session consolidating.
