- Fed’s Bullard: market is overpricing the chance of QE3
- Rtrs: no decision on Spain bailout until Sept 12, at soonest
- Goldman economist: Expects Fed to extend guidance, could do QE3
- Initial jobless claims 372K vs 365K exp
- US August Markit manufacturing PMI 51.9 vs 51.2 exp
- Canadian consumer debt highest since at least 2004
- Small Portuguese deficit but revenues fall
- German deficit may be lower than planned in 2012
- S&P 500 -0.8% to 1402
The euro grinded higher despite Bullard’s efforts to play down QE. Offers at 1.2575 held down EUR/USD in the early part of the session but the headlines out of Spain helped to cement expectations that help will come eventually and EUR/USD rose as high as 1.2590 before edging back to 1.2562.
The commodity bloc was on the defensive throughout the session. AUD down to 1.0439 ahead of barriers at 1.0430/20 an USD/CAD is edging toward parity but unable to break through 0.9950.
