- Portuguese government may quit if austerity bill fails; vote Wednesday
- Majority of euro zone believes Portugal will need bailout by June: Dow Jones
- US Treasury will sell $142 bln in mortgage-backed securities bought during crisis
- Trichet to European Parliament: Inflation risks are to the upside; Draghi, Tumpel-Gugerell concur
- Eurogroup finance ministers announce ESM to be raised to EUR 700 bln; to consist of EUR 80 bln in cash capital (half to be be paid in 2013 and annually subsequently; EUR 620 bln in guarantees; Germany responsible for 27%
- Moody’s: Downgrade risk in Japan higher after quake
- S&P 500 rises 1.5% to 1298
- US 10-year note yield rises 6 bp to 3.33%
- Oil rises $1.13, well below session highs despite Libyan action by US, allies: gold losses gains, ends at $1427
EUR/USD was the standout performer during the US session, rising from opening levels of 1.4165 to reach its highest levels since early November at 1.4240. Wider interest rate differentials were the main factor supporting the euro today. barriers are rumored at the 1.4250 and 1.4275 levels, just ahead of the 1.4280 level touched on November 4.
Stops are eyed above 1.4280 but 1.4300 barriers are said to be in play as well.
USD/JPY was unbelievably quiet in US trade today, trading in a tight 80.93/81.32 session range. Most action took place just above the 81.00 level. GBP/JPY, EUR/JPY and AUD/JPY were in greater demand than USD/JPY today as the market felt more comfortable taking on more risk after the weekend.
Cross buying helped lift cable above 1.6300. We reached 1.6328. Barriers are rumored at 1.6350.
EUR/CHF extended its comeback after bouncing from 1.2400 late late last week. It ends at 1.2872. USD/CHF was range-bound in a 0.9030/76 range, ending in the middle at 0.9052.
