- Greek Parliament approves PSI deal
- Venizelos aims to begin bond swap tomorrow
- Draghi: Recovery proceeding slowly
- IMF and Canada at odds with Germany on increased firewall
- de Jager won’t rule out more money for Greece
- Initial jobless claims 351K vs 355K exp
- BOC warns on housing
- Strong US 7-year auction
- EUR/USD touches 10-week high
- Gold hits $1784
- EIA build larger than expected, WTI higher anyway
- S&P 500 gains 0.4% to 1363
- EUR is top performer, USD lags
A refreshingly lively US session. EUR/USD started around 1.3300 but was sliding after Eurozone growth downgrades. Pessimism in US stocks pushed the pair through stops at 1.3290 to 1.3270. It was all higher from there with a swift, stop-loss-inspired spike up to 1.3374 after 1.3342 gave way.
Cable stumbled 50 pips early to 1.5683 but blew through the European high of 1.5731 late in the day before running into orders at 1.5740.
EUR/GBP was a major catalyst. Yesterday’s break of 0.8406 continues to inspire technical buying with 0.8500 now just pips away.
The mid-day US Treasury auction sparked a leg down in the dollar that was especially evident in USD/JPY as it quickly slipped to 80.05 from 80.25. Orders around 80.00 held up for a time but the late-day dollar plunge cleared the way to 79.85.
Oil demand continues to drive prices higher. A $1 round of profit taking on reports of slower European growth was quickly wiped out, sending WTI above $108 from $105.50 in early US trading.
Given all the excitement, commodity currencies were relatively well behaved, sticking within the early day ranges.
