- The dollar was pressured in the run-up and just-after the 16:00 GMT fixing but soon ended up around 1.4525 where it opened in New York
- Kyodo reports Geithner, Kan work out “pact” on forex stability
- Greek FinMin: Deficit plan to be submitted late this week, early next week; expects plan to be accepted
- Conference Board employment trends index rises to 91.8 in December from 90.3 in November
- EU economics czar-designee Rehn: Greek data may be unreliable, EU may ask for audit; Stimulus packages still needed; Worried weak USD, CNY could weigh on EU recovery
- Obama proposes fee on banks to recoup TARP losses
- Fed’s Lockhart: Commodities bear watching; Fed trying for Goldilocks exit- neither too fast not slow; sees steady, slow recovery
- Fed’s Hoenig: Fed should raise rates even if unemployment remains at 10%
- US Treasury announces losses of 68.5 bln on TARP investments as of end of fiscal 2009. Losses in AIG and automakers, not banks
- S&P 500 edges up 0.2% to 15 month high at 1147
- 10 year notes close unchanged at 3.83%
- Oil loses gains, closes down 0.42 at $82.33; Gold closes at $1053; down from $1061 highs.
EUR/USD added to overnight gains in midday trade , touching 1.4557 before easing later in the session. USD/JPY slipped below the 92.00 level to trigger stops. It fell to 91.82 before bouncing to end at 92.10.
The reflation theme was dominant early in the session but it lost momentum as the day wore on. Traders were concerned by the begging of the US earnings season and traded cautiously as the season is scheduled to kick off today with Alcoa earnings.
AUD held most of its recent gains, closing at 0.9315, still beloved as the gateway to China. Canadian finmin Flaherty said he’d like to see more movement among some Asian currencies, which the market took to mean a weaker CNY…
