- Germany to manage treasury function of euro SPV
- MNI: ECB sources say no discussion of forex intervention
- Japan’s Kamei: Tax hikes during a bad economy won’t raise tax revenues
- IDB/TIPP optimism index falls to 46.2 from 48.7
- Japanese FinMin Noda: Excessive, disorderly currency moves hurt markets and economy; then says he should not comment of FX rates!
- Swedish PM: No euro referendum for at least four years
- US sells $36 bln 3-year notes at 1.22%; bid to cover 3.23
- S&P 500 rallies 1.1% in final hour
- Gold closes at $1235 after reaching $1251 intraday
EUR/USD was quite volatile today as it continued to consolidate its most recent losses. EUR/USD was sold heavily early in the session, pushing prices down to the 1.1915/20 area where Asian central banks were rumored buyers.
A sharp short-covering rally was unleashed amid talk that the SNB intervened in EUR/CHF. That cross jumped from 1.3750 to 1.3900 in a flash before giving back all its gains later in the day.
EUR/USD reached 1.2008 on short-covering but failed to trigger trailing stops in the 1.2010/30 region. Bids remain on dips to 1.1910/20 and 1.1880/90, traders report.
USD/JPY was sold heavily this morning by a US custody bank but once that flow dried up, the greenback recouped lost ground. The order took USD/JPY to 90.85 and we end the session at 91.45, boosted by easing of risk aversion as stocks rallied late in the day.
AUD/USD ends the session near its highs, boosted by easing risk aversion and rare rally (of late) in copper. USD/CAD ends on its lows of 1.0475.
The pound was beaten down early after Fitch warned that the recent UK budget does not go far enough to slash spending. UK officials promised more cuts but the warning cast a pall over the pound most of the day. Cable closes at 1.4440 and traded in a 1.4440 range. EUR/GBP ends near opening levels in NY at 0.8280 after a rally to 0.8337 at midday.
