- Talk of large Austrian order to buy euros
- Greece misses 210 of 300 Troika targets
- U Mich July consumer sentiment 72.0 vs 73.4 exp
- US June PPI +0.7% y/y vs +0.2% exp
- NY consulting shop says ECB could go to negative deposit rates in September
- Spain to hike VAT on Sept. 1
- Spain approves liquidity mechanism for regions
- Greece could default on maturing bonds held by the ECB
- Fed’s Lockhart: Policy “untenable” if economy remains on current track
- Fed’s Lacker: I see no need for additional stimulus
- EUR shorts 165K vs 146K
- S&P 500 +1.65% to 1357
- GBP leads, USD lags
The euro touched a fresh two-year low of 1.2161 early in US trading but quickly reversed ahead of bids at 1.2150 and 1.2258 before settling around 1.2244. Talk of a large Austrian order, options activity and an old-fashioned short squeeze made the rounds but there was no definitive answer for what sparked the turnaround.
Cable was even more pronounced and continued to 1.5577 from 1.5450 at the outset of US trading.
Broad USD selling even spread to USD/JPY as the rout got underway, knocking the pair down to 79.07 before the pair fell back into a coma around 79.20.
The gold rebound continued but fell just short of $1600.
AUD/USD erased nearly all of the post-employment report declines, slowing making its way to 1.0230 after blowing through small stops at 1.0200.
