- Brown replaced by Cameron as UK Prime Minister, coalition details remain murky
- ECB’s Wellink: EU rescue will not work without budget cuts
- SNB’s Hildebrand: Will do all that is necessary to avoid deflation
- Trichet: ECB will sterilize bond purchases; banks are not ECB’s problem
- Fed’s Lacker: Can’t wait too long to hike rates
- Gold surges to fresh highs at $1233.50
- S&P 500 closes down 0.3& in volatile trade
Well, we got one thing checked off the the to-do list: We managed to see a new UK government put in place though details of the coalition agreement still have not entirely been worked out, it would appear.
Cable reached 1.5000 in the hours leading up to the official appointment of David Cameron as the new PM but eased off to 1.4950 as traders await details on the makeup of the coalition.
EUR/USD spent the day trading choppily between 1.2670 and 1.2750. Several attempts were made to trigger stops above 1.2750 but selling, rumored to be from the BIS, stalled gains each time. Asian and Mid East central banks were buyers several times throughout the session and limited dips.
EUR/USD ends the session not far from the lows after Trichet said that monetary policy, not looking after the banks, is his responsibility.
EUR/CHF rallied to the 1.4117 level this afternoon after talk of SNB buying as well as comments from SNB President Hildebrand that he will do what it takes to avoid deflation. We end at 1.4080 with safe-havens in demand across the board.
USD/JPY ends the session in the middle of its range but weighed down as the JPY too was bought up as a safe-haven. We head out at 92.71/72.
