- US consumer price index unchanged in July; core rises 0.1%, as expected
- Canadian manufacturing sales rise 1.9% in June; stronger
- US industrial production rises 0.5%; capacity use 68.5%; first rise since October
- University of Michigan consumer sentiment index dives to 63.2; much weaker
- Russia’s Medvedev: Cannot have normal ties with Ukraine with present leadership
- Qatar announces EUR7 bln investment in VW/Porsche
- Canada’s Harper: Not out of recession yet; no election
- US 10 year note yield falls 4 bp to 3.56%, bounces from 3.50%; down 30 bp for the week
- S&P 500 closes down 0.9%, cuts losses at close
EUR/USD lost ground throughout the US session. Selling above 1.4300 out of China helped cap early rallies while profit-taking in stocks and commodities helped trim risk appetites (and vice versa) EUR/USD eased through 1.4250 range lows late in the morning and finally reached a low of 1.4160 at mid-afternoon in New York as positions were offloaded ahead of the weekend.
Comments by Russian President Medvedev on the inability for Russia to have normal relations with Ukraine sent dealers to the sideline, mindful of Russia’s powerful grip on energy supplies to Europe which transit Ukraine.
USD/JPY was sent lower by repatriation of coupon payments from the US Treasury this week, one of the largest of the year. Softer US bond yields and a “risk-off” attitude contributed to the drop to 94.43. An afternoon rebound neared the 200-day average at 94.95.
Kiwi jumped to a new 2009 high(0’6885) on a mystery flow. It ended the day much lower at 0.6760. Aussie retreated too after stalling again in front of the 0.8500 where big barrier options are rumored. It tumbled to 0.8277 before ending at 0.8490.
USD/CAD jumped above 1.10 as oil tumbled $3 or 4.25% on the general risk aversion play.
China remains a major focus for the New York market after a rocky weak in the Shanghai composite. Look for more of the same early next week.
