- US durable goods orders fall 3.6%; non defense capital goods orders ex-aircraft fall 2.6% ; much weaker than expected
- EU commissioner: Greece may be forced from euro
- Fitch: German banks Greek exposures manageable
- Poland’s Belka: Greece likely to receive debt forgiveness, with conditions–Bloomberg
- Fin Min Noonan: Ireland will not vote for Lagarde for IMF chief
- S&P 500 rises 0.4% to 1321
- US 10-yr note rises 1 bp to 3.125%
- Oil rises $1.60 to $101.18; gold flat at $1525
Shockingly, EUR/USD fell early in the day on Greek concerns before rebounding with its range late in the European session. Do you sense a pattern playing out here?
EUR/USD fell back to 1.4027 lows in early NY trade after comments from an EU commissioner. The commissioner of fisheries, of all things. The market fell before knowing who in the world Maria Damanaki was…Once they realized she was not in much of a position to do anything about Greece’s future within the euro it was back up on short covering. Very good buying was seen in the 1.4025/30 area from sovereign accounts, further helping turn the market bullish in the short-term. The rally topped out shy of 1.4134, yesterday’s highs. 1.411185 was our top today.
The CHF surged to record levels against the euro today. We fell as low as 1.2270 and close t 1.2295.
Otherwise the markets were quietly range-bound give or take the odd spike on large orders in disinterested markets. The Greek story is old enough to grow hair, so the market is getting a little tired of it and looking for fresh inputs.
