- US CPI rises 0.3%; ex-food and energy up 0.2%; slightly firmer than expected
- US housing starts fall 10.6% in October, much weaker than expected
- Geithner: Credit very tight for small business; could hamper recovery
- Fed’s Bullard: Fed may not tighten until 2012; focus should be on QE; Asian bubbles not Fed focus
- Obama warns of double-dip recession
- Moody’s: Outlook for Austrian banking system negative; profits low, capital weak
- S&P 500 closes nearly unchanged at 1110
- Gold makes fresh all-time high at $1152.75
An unsatisfying session for many today as EUR/USD added marginally to overnight gains, reaching 1.4990 after overcoming London’s 1.4972 top. Follow-through was limited as Asian central banks continue to take profits after buying EUR/USD heavily above 1.4800 yesterday. Gold made a new high but EUR/USD fell well short and survived a shakeout down to 1.4935 before ending at 1.4965.
Somewhat firmer US rates and a rebound in EUR/JPY helped carry USD/JPY back toward 89.60 resistance before the grind stalled at 89.48. Offers remain stacked up between 89.50 and 89.60, traders report.
Cable slumped late in the London session, triggering stops below 1.6750. Cable fell to the high 1.67-teens but rebounded back toward 1.6745/50 before stalling. Dovish MPC minutes were the excuse du jour.
AUD was quite choppy during the US afternoon amid reports of real money accounts selling several of the commodity currencies. Some funds have November year-ends, so perhaps that is the catalyst to take chips off the table. We dipped to 0.9270 but recovered toward 0.9300 late.
