- Euro hits 7-week high at 1.2488
- S&P 500 hits 4-year high
- Periphery CDS at lowest since April
- Canadian wholesale sales -0.1% vs +0.1% exp
- Redbook US chain store sales up 1.9% y/y
- Belgian consumer confidence falls to -16 in August from -13 in July
- Cable hits 3-month high above 1.5800
- Schatz pays again
- S&P sees risks in Europe and US
- S&P downgrades second-largest Italian region
- S&P 500 falls 0.35% to 1413
- EUR leads, CAD lags
The euro briefly stalled at 1.2474 but shortly later took out offers at 1.2475 while barriers at 1.2500 were never seriously challenged. Later, short covering in EUR/AUD supported the euro broadly even as risk appetite faded.
The day couldn’t be characterized as ‘risk on’ or ‘risk off’ and flows appeared to be a large factor as volatility ramped up even in the absence of news.
Reversals were evident in several pairs as they tracked the stock market. USD/CAD in particular rebounded from a three-month low to match the highest levels in a week.
USD/JPY peaked early in the session at 79.53 then slumped to 79.22. Bids at 79.20/00 support the pair.
