- Boehner Plan to be voted on around 22:00 GMT
- US weekly jobless claims fall 24,000 to 398,000; first fall below 400,000 in 15 weeks
- Bloomberg: Treasury to pay bondholders first if debt ceiling not raised
- US pending home sales rise 2.4% in June; better than expected
- Tremonti holds press conference after rumors of resignation during European morning; Crisis resolution on positive path
- Short-term debt-limit extension may be in the works if no agreement: CNBC
- Fed’s Lacker: More stimulus would raise inflation but not growth
- SF Fed’s Williams: Fed can add stimulus of or hike rates depending on what economy needs
- US 10-year note yields fall 2.6 bp to 2.956%
- S&P 500 falls 0.3% to 1301
- Gold rises $1.80 to $1615.00; oil falls 0.25% to $97.15
EUR/USD fell sharply during the European session as Italian and Spanish concerns recaptured the markets attention, falling to 1.4253 before recovering. The US debt drama continues to play out while the US Treasury made known than they will prioritize debts and decide who to pay should the debt ceiling not be raised. Bloomberg reported late today that bondholders will be paid first, as the market fully expects. The Treasury will officially announce its plans after the close Friday.Rebounds in EUR/USD were capped in the 1.4328 area where the 100-day moving average was situated Thursday.
AUD/USD succumbed to profit-taking during the US afternoon, falling below 1.1003 support and triggering small stops down to 1.0980. Short-term technicals suggest a pullback to the 1.0925/30 area may be unfolding.
USD/CHF continues to find support at the 0.7990 level but rallies are shallow, only to 0.8050.
EUR/GBP fell heavily on European sovereign debt jitters this morning but month-end demand may give the cross a reprieve through midday on Friday as the UK monthly payment to the EU is converted by the Bundesbank.
US GDP is the focus early tomorrow in the States; Whisper numbers are for weaker than the 1.8% consensus forecast.
