- FOMC minutes: many members said further stimulus unless substantial and sustained eco strengthening
- US existing home sales 4.47m vs 4.51m exp
- Canadian retail sales -0.4% vs +0.1% exp
- BOC’s Carney: Makes sense to talk about rate cuts
- Juncker: no decision on Greek aid until October (Merkel too)
- Juncker: extension of Greek payment depends on Troika
- Greek PM Samaras: I personally guarantee Greek debt to Germany
- Rehn: less pessimistic on euro
- US CBO narrows deficit forecast
- Tropic Storm Isaac gaining strength in Gulf
- S&P: bailout to have no impact on ratings
- Spanish cabinet to approve bad bank Aug 24 or 31
- PIMCO’s Gross: QE3 now an 80% probability
- S&P 500 flat at 1414
- JPY leads, CAD lags
The euro sank below stops at 1.2440 in early US trading on a flight to German debt but bids at 1.2430 helped to erase the gain and a quick spike high was traced out before the European close. The market hunkered down in anticipation and then busted through 1.25 after the minutes, hitting 1.2538 before easing slightly.
USD/JPY muddled lower until the FOMC minutes and then the floor caved in, falling to 78.28 from 79.19, through the 100-day moving average.
Cable screamed higher for the second day, hitting 1.5863 as the summer range was demolished. Resistance at 1.5904.
AUD/USD reversed the recent slump after sliding to 1.0412 in early US trading. The Minutes juiced the pair to 1.0518 but big sell orders at yesterday’s high of 1.0520 stopped the move so far.
USD/CAD was the outlier today. The weak retail sales report made sellers reluctant to sell the pair even with the big buck tumbling.
Gold busted through significant resistance (200 dma plus the summer high) to hit $1654. It’s an impressive endorsement for QE3 .
