- ADP employment 201K vs 140K exp
- ISM non-manufacturing index 53.7 vs 52.5 exp
- Initial jobless claims 365K vs 370K exp
- Draghi delivers leaked bond plan, stresses conditionality, lowers growth outlook
- Draghi won’t buy Irish/Portuguese bonds until they regain market access
- ECB holds at 0.75%
- BOE holds at 0.50%, leaves purchase program at 375B pounds
- Hungary rejects IMF aid conditions
- Spanish 10-year yields down 38 bps to 6.03%
- Italian 10-year yields down 25 bps to 5.26%
- S&P 500 up 2% to 1432
- S&P 500 closes at highest since Jan 2008
- USD/JPY hits two-week high
- AUD leads, JPY lags
Draghi merely confirmed all the details that leaked prior to the ECB announcement. EUR/USD slipped to 1.2565 from 1.2630 during the press conference as he downgraded growth and rumor buyers sold the fact. Later, the rip higher in stocks boosted confidence and EUR/USD recovered to 1.2633.
Cable touched the highest since May at 1.5943. Stops were tripped above 1.5920. A close above 1.5909 is above the 61.8% retracement on the decline since May.
USD/JPY surged on the ADP number to 79.03 — the highest since the FOMC minutes in late August. The market has scaled back QE3 expectations on the better data.
USD/CAD fell to the lowest since May, busting through stops below at triple bottom at 0.9842 to the lowest since May. Bids at the 2012 low of 0.9800 have held so far. Spot at 0.9830.
Gold +$8 to $1701.
Play the NFP contest before all the good numbers are gone.