- S&P Case Shiller home price index rises 3.8% y/y as US subsidy comes to an end
- US consumer confidence plunges to 52.9 in June from 62.7 in May
- Obama, Bernanke meet on economy; Bernanke said only “It’s important for us to take that global perspective as we discuss the economy”. Obama puts on brave face
- BOE’s Fisher warns of premature tightening; deflation risk not dead
- ECB’s Nowotny: Low inflation gives ECB “room for maneuver” on monetary policy; hint of willingness to ease from member of hard-euro block?
- Obama presses for carbon tax despite economic weakness
- S&P closes at 2010 low of 1041, down 3.1%; US 10 year notes close at 2.95%, lowest in 14 months
- Oil falls 2.70 to $75.55; CRM falls 2.75%
China growth jitters, European funding concerns and growing evidence of a US double-dip sent risk into a tailspin today.
EUR/USD fell as low as 1.2150 before central bank and real money buying slowed the slide. Rebounds were limited to the 1.2210/15 area. Small stops cluster at 1.2225 with stops also below 1.2150.
EUR/GBP and EUR/CHF continued their declines. Dovish comments from MPC member Fisher (see above) helped cool the GBP rally. Month-end demand for the cross is likely tomorrow as the UK makes a payment to the EU.
EUR/CHF slipped to 1.3167 as dip buyers continue to be laid to waste.
USD/JPY fell to 88.29 on risk aversion and ends at 88.53. Low US yields contributed to the JPY rally.
AUD and CAD were shed throughout the session as global growth fears reached new depths today after the US consumer confidence data. A plunge of that magnitude was eye-opening for the market and suggests consumers will put their wallets away in the months ahead, slowing the already tenuous US recovery. AUD fell to 0.8475 and USD/CAD reached 1.0574.
