- EU’s Rehn: Concerned about pace of euro decline, not level
- Canada’s Flaherty: Glad G20 agrees with Canada on nixing bank tax
- German budget proposes EUR 80 bln in cuts over next three years
- Goldman Sachs subpoenaed by Financial Crisis Inquiry Commission
- Estonia to join euro as of January 1, 2011
- Spanish spreads over German bunds closes at 210 bp; widest in history of EMU
- SPV to come into being this month; details outlined by EcoFin
- Equities dive again; S&P falls 1.35%
- US yields slide, 10-year note closes at 3.15%
- Gold rallies strongly, ends at $1240; copper falls 0.7%
US markets were subdued today, relatively speaking but the euro was unable to shake off its funk. Prices are ending on their lows for the North American session around 1.1915 after attempts to retake 1.2000 during London hours were rebuffed. A late session swoon in equity prices helped undermine the deflate risk appetites further. 1.1912/1.1986 was the range.
USD/JPY and EUR/JPY attempted to rally early in the day as the gloom parted for a few hours. EUR/JPY made a run for stop-loss buy orders above 110.35 early in the day and again around lunch time but failed, sending prices sliding to 108.95 as we write. USD/JPY was undermined by falling US bond yields and steady selling of crosses like AUD and NZD/JPY.
GBP outperformed on a relative basis today as EUR/GBP fell to its lowest level since November 2008 today. The range in the cross was 0.8207/0.8264 during New York trading.
AUD and Kiwi both saw bouts of heavy selling today. AUD ends near session lows just below 0.8100 while Kiwi slipped from 0.6685 to 0.6580 on an order executed by a Swiss bank.
