- Talk in US that JiJi Press reported that BOJ to resume “price keeping operations” in Japanese stocks. Said to be willing to buy JPY 20 trln.
- Germany says will be back euro in “every way“
- Bernanke plays down odds of bank nationalizations, doesn’t plan “anything like that”
- ECB’s Ordonez- Non-conventional measures advancing
- French jobless rises to 90,200 in January; record monthly jump
- BOE Barker: Sterling weakness will help exporters
- BOE’s Blanchflower: Large fiscal stimulus needed, recession may intensify
- US Treasury announces Capital Assistance Program for banks
USD/JPY built on the gains of recent sessions, breaking resistance at 97.45 in New York trade, helped by talk that Japanese authorities may support local stock prices and on hopes that the latest US bank bailout plan will preserve common shareholders. US equities saw a short-covering rally after the bank news, reversing losses of better than 2% intraday.
Cable was very weak today, weighed down by Barker and Blanchflower comments as well as on month-end buying of EUR/GBP by the Buba.
EUR/USD traded lower in New York, weighed down by fears of further sovereign debt downgrades in Europe after a warning from S&P and concerns that Germany will be left holding the bag if Ireland and other eurozone countries are forced to seek aid. German credit default swaps widened to record wides today at 94 bp. The US did the same, trading at 100 bp. Strong bids are seen at 1.2690, dealers report.
EUR/USD traded in a 1.2691/1.2831 range in New York; USD/JPY traded 96.35/97.78. Cable 1.4423/1.4173
