- ECB leaves rates unchanged, no new programs
- Rajoy/Monti refrain from calling for EFSF
- Monti: ECB recognizes possible need to intervene
- Initial jobless claims 365K vs 370K exp
- US June factory orders -0.5% vs +0.5% exp
- June durable goods orders revised lower
- Draghi: pointless to short euro
- German govt budget spokesman: EFSF can buy bonds
- S&P affirms Portugal’s rating
- Spainish and Italian 10-year yields rise by 40+ bps
- UK PM Cameron backs Osborne
- Gold at one-week low
- S&P 500 down 0.7% tp 1365
- EUR lags, JPY leads
The euro screamed to 1.2405 just before Draghi’s press conference and then tumbled to 1.2200 after it began. The euro then took a second leg down to 1.2128 after Rajoy/Monti compounded the disappointment.
It was whipsaws galore as cable rallied to 1.5679 then dumped to 1.5494.
Even the commodity currencies spanned more than 100 pips.
The lone exception was USD/JPY, which was eerily quiet around 78.21, raising suspicions.