- ECB’s Stark sees second half of 2010 slower than first half, worst of crisis is over
- ECB’s Constancio: Crisis will weaken recovery but not kill it
- European bankers group sees haircuts of 5-30% in stress tests
- US wholesale inventories rose0.5% in May, sales fall 0.3%
- European rescue fund could be used to bailout banks: French regulator
- IMF’s Lipsky: Greece on right course; no talks with Spain, others in EZ
- S&P 500 rises 0.7%; up 5.4% for week
- US 10-year note closes at 3.06% yield
EUR/USD was sold from the outset in New York with the market frustrated at the euro’s inability to maintain levels above trendline resistance at 1.2710. Also contributing to the early slide was expected demand from the Bank of Korea for EUR/USD to diversify some of the $2 bln dollars bought overnight against the Won. That demand came to late for many of the specs, who hammered EUR.USD down to 1.2609 before it could rebound. Heavy sales in the 1.2620s were absorbed on the way back up in EUR/USD (Asian central bank buying? May have been…) which prompted intraday shorts to cover. Selling from US real money accounts toward 1.2660 capped EUR/USD for the balance of the session despite a nice rally in risky assets late in the day.
USD/JPY managed a late day rally, along with stocks and commodities. It reached the 88.65 area after spending most of the day in a narrow range around 88.50. Exporter offers are eyed at 88.70/75, traders say.EUR/JPY rallied above 112 late in the day as risk aversion eased further.
GBP/USD performed weakly late in London and that weakness extended through the US afternoon. EUR/GBP managed to rally toward 0.8400 late in the day, and with EUR/USD capped, the only place for cable to go was lower. It triggered stops below the 1.5080 level and more below 1.5060, falling as low as 1.5053. Important EUR/GBP resistance looms above the market at 0.8420/25 level.
CAD was the star performer among the commodity currencies today after an astonishingly strong Canadian employment report Friday morning. Real money buying of the Loonie drove the USD to 1.0294. It closes at 1.03335 with the market once again pricing in a series of BOC rate hikes.
AUD/USD was supported by its own strong employment report Thursday as well as the general rally in risk seen for the bulk of he week. It ends near highs for the week, at 0.8780.
