- Gold reaches $980, oil $66.50
- US bond yields retreat but dollar woes continue; 10-year yield dips to 3.45%
- Us GDP revised to -5.7% in Q1 from initial -6.1% reported. Lower than -5.5% expected
- UAE central banker says NOT diversifying dollar reserves (initially reported as IS diversifying reserves)
- NY NAPM index rises to 61.3 in May from 28.3 in April; largest jump since 2002.
- Chicago PMI falls to 34.9 in May from 40.1 in April; lower than expected
- University of Michigan consumer sentiment 68.7 in May from 65.1 in April
- Germany’s Steinbrueck: EUR 90 bln in new borrowing for 2010
- Canadian FinMin Flaherty: Concerned by rapid fluctuations in C$
- Brazil CB: Extremely favorable moment to increase foreign reserves
- S%P rises 1.4%, rallies late. Up 3.6% for the week, up 5.3% for the month
The weak dollar trend was maintained in the US today despite some of the jitters in the bond market settling down. Commodities continued their surge as well, fueling further dollar sales (and vice versa).
EUR/USD rose to 1.4168 late in the European session. Cable was in heavy demand at month-end amid talk of demand linked to the rebalancing of equity indexes. It brushed 1.62oo and closed at 1.6180. CAD was also a beneficiary of month-end demand, falling briefly below 1.0900. AUD/USD broke above the 0.8000 level and closed at 0.8013, session highs. Commodities and other “risky” assets remain in demand while the dollar is the last place the market wants to be at present.
Jawboning was heard from the Eurogroup, Canada and Brazil today but none of the officials made a sustainable dent in appetite for currencies and distaste for the dollar.
Have a great weekend every one!
