- IMF’s Strauss-Kahn and ECB’s Trichet to meet with German lawmakers on Wednesday to make case for Greek aid
- Merkel: German aid for Greece when conditions are met; aid could come in days
- Lagarde says “some” governments “posturing” on aid conditions
- Greek FinMin: Financing in the market “totally prohibitive” now for Greece
- ECB’s Weber: German growth to pick up in Q2
- Trichet: Inflation expectations well anchored, never pre-commits on policy
- Belgian government resigns
- Brazilian FinMin: Better G20 FX coordination needed; dollar to blame
- S&P 500 falls 0.4% to 1212, US 10-year notes end unchanged at 3.81%
- Oil falls 1.5% to $83.80; Gold ends on lows at $1152
- Greek bond spreads end at record wides of 650 over 10-year bunds
EUR/USD spent much of the US session aimlessly range trading between 1.3300 and 1.3350. The usual Greek overhang was unable to push the market to fresh lows despite a surge in Greek interest rates. 2-year bonds in Greece rose above 13% today.
Demand for EUR against commodity currencies was seen today from US real money accounts, selling what is dear and buying what is presumably seen as relatively cheap. Sell orders remain rumored in the 1.3390/1.3400 area from Asian central banks on rallies
AUD/USD drifted down to 0.9265 late in the session as a result while USD/CAD rose above 1.00.
USD/JPY traded in a range just below 94.00 to just above the 94.30 level; Exporter offers begin at 94.50.
USD/CHF buy stops are eyed just above the 1.0800 level, traders noted today.
