- ISM manufacturing 51.5 vs 49.7 exp
- Bernanke: will keep rates low as econ strengthens
- RTRS: Germany asks Spain to wait to ask for bailout, sources
- Japan econ min: BOJ foreign bond buying being considered
- Japan fin min: Expects BOJ to implement bold mon pol
- Nikkei: BOJ likely to keep policy unchanged at Oct 5 meeting
- Fed’s Evans: sees scope for Fed to do more
- Gold hits 2012 high, silver at highest since Feb
- Final Markit PMI unchanged from flash reading at 51.5
- Italian fiscal deficit tightens, Fiat sales crumble
- Asmussen: ECB needs strict separation between monetary policy and banking supervision
- S&P 500 +0.2% to 1444 after rising as much as 1.2%
- EUR leads, NZD lags
The US dollar slumped in early North American trading and the euro took out the earlier 1.2912 high, hitting stops. A second push to 1.2939 came on the heels of the ISM data. Afterwards, EUR/USD drifted down to to 1.2876, matching the late-European low.
GBP was a laggard as EUR/GBP gains weighed on the pound. Cable peaked at 1.6175 after the ISM numbers and then fell back to 1.6121. Offers 1.6200/10.
USD/JPY took out Friday’s high after the Japanese jawboning and broad US weakness. It ran to 78.15 but couldn’t inspire any real momentum and fell back to 77.99.
Commodities and the commodity bloc were choppy but finish the day close to unchanged.
Gold ran up to $1791 but has receded to $1777.
