- ECB’s Bini-Smaghi questions wisdom of closer fiscal union
- S&P doubles from market low of 666 to 1332
- Trichet: No question of extending term in office
- Fed’s Dudley: Economy improving but but not fast enough; QE helped
- Eurogroup’s Juncker: ESM to be raised to EUR 500 bln in 2013
- Moody’s: Obama budget proposal marginally positive; does not really address entitlements
- US 10 year note falls 1.5 bp in yield to 3.625
- Oil falls below $85.00; down $0.69 to $84.89
- S&P 500 rises 0.25% to 1332.00
EUR/USD made its low (1.3428) early in the US session with the market reflecting the usual Greek and Irish concerns as well as fears that German’s WestLB would become an issue again. Prices recovered a few hours later amid the usual reports of Asian and Middle Eastern central bank buying. A round of heavy EUR/GBP buying from the 0.8400 area by a UK clearing bank also helped fuel the squeeze higher in EUR/USD. Stops at 1.3505 were successfully harvested before prices dipped into the doldrums in the afternoon.
USD/JPY traded in very quiet fashion in New York today.83.23/50 contained it. Stop-loss buy orders are rumored at 83.70.
GBP/USD was quite cross driven though there was consistent demand not far below 1.6000. EUR/GBP swings pretty much dictated the price action. 1.5985/1.6040 was the US range and we close at the highs.
CHF was in a bit more demand after being dumped on Friday. Blame riots in Bahrain and the usual European jitters for the stall in the negative momentum for the franc. 1.3053/1.3094 was the range in USD/CHF, 1.3053/1.3094 in the cross.
AUD/USD heads into Chinese CPI on a solid footing. Copper had a big day, rallying 2% in anticipation of China being able to avoid slamming on the monetary brakes. Bids were heavy toward 1.00 on the early-morning dip, traders reported; Rallies reached 1.0040.
