- US Q3 GDP revised lower to 2.0% from 2.5%
- Sarkozy, Merkel and Monti to meet Thursday
- Canadian retail sales rose 1.0% in September; stronger than expected
- Richmond Fed index rises to flat in November from -6 in October
- Belgian bond yields rise above 5% as market fears downtrend
- IMF creates new credit line to break “chain of contagion”; not intended for Italy, Spain
- Sarkozy says France and Germany will propose EU treaty changes to avoid large fiscal divergences
- Belgian ECB member Coene: Sovereign debt no longer risk-free
- US 5-year notes auctioned at record low 0.937%
- Fed minutes: A few members wanted more easing; variety of policy alternatives debated but no immediate action foreseen
- German FinMin says Eu summit planned December 9; repeats ECB can’t finance governments
- Fed to stress test 31 banks in early 2012; 6 large trading banks to test against European, global shocks
Tight ranges either side of 1.3500 as the European sovereign debt crisis continues to take a grater toll on bonds than on the currency. Traders continue to speculate capital repatriation by big European financial institutions is helping keep the euro better bid than most would suspect given the dire state of the European bond market.
The euro popped briefly at midday in NY as the IMF announced it is launching a new liquidity program for “contagion bystanders”, those with strong current account positions and otherwise solid finances but put at risk by the fallout from Europe. Spain and Italy are not seen as candidates for this type of financing.
Looks like we remain adrift within a 1.3425/1.3650 range with little direction in the near-term.
