- ADP employment report shows private payrolls fell 491,000 versus exp-645,000
- Norway cuts rates 50 bp to 1.5%
- Sweden repeats may use quantitative ease
- Most stress test results leaked; Tangible common equity needs not as severe as feared
- Canadian building permits soar 23%
- Ivey PMI rises above 50, to 53.7 from 43.2
- S&P cuts ratings on five German landesbanks
- SNB President Roth: FX intervention most effective tool in preventing deflation
- Czech upper house approves Lisbon Treaty
- Renault bidding for GM’s Saturn brand: WSJ
- Oil closes at nearly 6 month high above $56, up $2.50
- US 10-year note auction well received, yields dip to 3.15% despite stock rally
- Stocks build on gains as more signs worst behind US economy, S&P rises 1.75% to 919.50
Commodity currencies were the market leaders today as hopes for a global economic recovery were boosted by a big improvement in the ADP employment report. AUD/USD reached the 0.7500 level and USD/CAD fell to 1.1660.
EUR/USD finds itself in the unfamiliar position of being an after thought as focus turns to selling EUR versus AUD and CAD rather than the more familiar EUR/USD and EUR/JPY.
USD/JPY rallied briefly after the ADP data, reaching 99.07 but was punched in the nose and slid all day despite falling risk aversion. Looks like the stock/JPY correlation is breaking down once again.
GBP was firm on the crosses today as well as against the dollar, a beneficiary of the reflation trade and on firm service-sector PMI earlier in the day.
EUR/USD range 1.3270/1.3374 in NY; USD/JPY 99.07/98.20, AUD/USD 0.7389/0.7500, USD/CAD 1.1650/1.1824, GBP/USD 1.5009/1.5148
