- Contagion risk behind Eu push for Irish aid
- US CPI rises 0.2% m/m in October, core unchanged; rises 1.2% y/y, 0.6% core; lowest core rate on record
- US housing starts fall 11.7% in October
- Luxembourg’s Mersch: Euro will survive
- BOE’s Tucker: Outlook has improved in recent months; determined to get inflation down while supporting economy
- Bernanke says QE could create 700,000 jobs: Senator
- Fed’s Bullard: Fed will probably buy all $600 bln Treasuries; disinflation trend continues
- Ireland still has not asked for assistance; sensible, precautionary discussions taking place
- S&P 500 rise 0.02%, US 10-year not rises 3 bp to 2.87%
EUR/USD saw a bit of short-covering late in the European session, rising briefly to the 1.3566 level before slipping back to opening level right around 1.3520. It was one of the quietest days in weeks.
USD/JPY slipped back after the Fed bough about $8 bln in longer-dated (out to 10-years) coupons which briefly knocked yields down to around 2.80% intraday before backing up to 2.88% late in the day. It held 83.00 and ends at 83.28.
GBP/USD rallied to 1.5945, stalling just below the important 1.5950 level from which cable tumbled earlier in the week. Like EUR/USD, the gains were fleeting and we close at 1.5895.
Commodity currencies were mostly range bound with CAD an under-performer on a further fall in oil today. We are back near $80 after flirting with $90 last week.
The broad theme today was consolidation within a broad dollar rally.
