- EUR/CHF jumps 140 pips on rumors of higher SNB peg
- IMF cuts global growth forecast to 4.0% from 4.3% this year
- IMF cuts US to 1.5% from 2.5%; Europe to 1.6% from 2.0%
- US housing starts fall 5% to 571K pace vs 590K expected and 601K prior.
- Building permits climb 3.2% to highest since December.
- Canadian wholesale sales +0.8% vs +0.6% consensus
- Canadian leading indicators 0.0% vs. +0.2% expected
- BOC Gov. Carney says eurozone “extremely vulnerable”, leaders need to deploy resources.
- BBC: UK gov’t is considering ₤5 billion stimulus
- Germany affirmed at AAA by Fitch
- S&P 500 falls 0.2% to 1202.
- Crude up $1.19 to $86.89.
- 10-year Treasury yield down 2 bps to 1.933%
- JPY and GBP lead the market; CHF and NZD are worst performers.
Choppy trading in EUR/USD throughout North American trading. The high of 1.3744 came as the EUR/CHF rumours hit and the low of 1.3646 followed shortly afterwards. Late in the day we are awaiting a statement from Greece and the Troika regarding today’s talks.
Late reports from the Greek media suggest another meeting has been scheduled for early Oct., triggering fears that no deal has been reached to disburse the €8 billion aid tranche expected. This hit stocks and commodity currencies. AUD and NZD fell around 50 pips and stocks finished unchanged after trading more than 1% higher for most of the day.
USD/JPY was under pressure throughout the day on worries about QE3 coming out of tomorrow’s FOMC meeting.
