- Spain forecasts 2011 deficit at 8% versus 6% target
- Spain announces € 8.9B in spending cuts
- EUR net short position falls to record in CFTC Commitments of Traders report
- IMF says USD share of global FX reserves +7.5% y/y in Q3; EUR loses ground
- Milwaukee PMI Dec 57.77 vs 56.7 prior
- US Congress delays vote on debt ceiling, citing scheduling
- EUR/JPY hits fresh 10-year low
- S&P 500 falls 5.5 points, or 0.4% — flat on the year
- AUD and JPY lead on the day; EUR and USD lag
The final session of the year was more volatile than expected with good-sized ranges and moves. EUR/USD was the laggard at the start of the session at 1.2934 but marched higher, including a pop to 1.2999 at the London fix. After Europe shut down it was a slow march back to opening levels.
USD/JPY awoke just in time to ring in the New Year. The pair traded in its widest range since the Oct 30 intervention and fell 70 pips. It was basically a one-way trade lower until Europe closed and then the pair leveled out slightly below 77.00.
EUR/JPY briefly touched below the magic 100.00 line in Europe and then sank before the mark in the US. Afterwards the pair continued to decline, touching below 99.50 and closing out the year at a 10-year low.
AUD was the big winner, closing at the highest since Dec 6 in the second straight day of buying.
It has been a pleasure and a privilege to bring you news and analysis in 2011. Have a Happy New Year!
