- US PPI rises 0.8% in September; core up 0.2%; much higher than forecast
- TIC data shows massive US capital inflows in August after US downgrade, sovereign debt jitters
- Merkel: Permanent Troika mission to Athens may be needed; No EFSF leverage via the ECB; OCt 23 won’t be last step toward solving crisis
- ECB buys Italian and Spanish bonds, helps turn EUR/USD up from session lows
- ECB’s Costa: Portugal budget adjustment has become more urgent
- Greek PM: Struggling to save Greece from default
- Italian banking industry downgraded to Group 3 from Group 2 by S&P
- MOF and BOJ forms team to monitor strong JPY: Nikkei
- Bernanke: Fed seeks to increase clarity on policy tools
- EU sets short-selling law, naked CDS ban
- BOE’s King: Authorities are running out of time to solve crisis
- Guardian: France and Germany have agreed to leverage EFSF; recapitalize banks
- DJ: EU sources deny Guardian report
- S&P 500 rises 2% to 1225
- US 10-yr note rises 2 bp to 2.175%
- WTI rises $2 to$ 88.45
Very volatile trade all day as EUR/USD bounced from 1.3655 toward 1.3730 in early US trade only to make a new low at 1.3652 a short while later. Firm stocks and hopes for Japanese efforts to boost USD/JPY and EUR/JPY helped push EUR/USD through intraday resistance at 1.3730. We stalled ahead of 1.3750 until the Guardian report sent EUR/USD soaring to 1.3815, the 61.8% retracement of the recent drop from 1.3915 to 1.3650 before stalling. We pulled back to the 1.3750 area late as denials of the Guardian report hit the wires. Apple’s poor earnings report will likely trigger stops in the 1.3740 area.
All the best, y’all. I’m wrung out…
