- SNB’s Hildebrand: Financial waters calmer but crisis not completely over
- University of Michigan consumer sentiment rises to 70.2 from 65.7 in August
- ECRI weekly index rises to all time high, suggests vigorous recovery
- Eurogroup head Juncker: Current euro fx rate will not hamper recovery: Reuters
- Canadian FinMin Flaherty: Limited toolbox to deal with CAD rate
- US budget deficit $111.4 bln in August; lower than expected
- Us bond yields dip to 3.29% intraday but end at 3.34%
- Oil reverses gains, falls from $72.90 high to close at $69.20
- Gold reaches new trend high at $1011, closes at $1006
- S&P 500 dips 0.1% to 1042.73
A quiet market early this morning saw a pick up in action as the University of Michigan showed that US consumer sentiment picked up steam in early September. Gold prices shot up to $1011 and EUR/USD to 1.4634. The rally was short circuited by a report via CNN that a boat on the Potomac River in Washington, DC was fired upon by the US Coast Guard in the vicinity of the Pentagon as Obama visited for 9/11 anniversary ceremonies.
EUR/USD dropped to 1.4555/60 in a flash as dealers liquidated positions. A short-while later, it was reveiled that the Coast Guard actions was a training exercise…Sound familiar?
An afternoon retest of those lows helped validate support at 1.4560 and dealers sent prices back up to 1.4600 before settling down around 1.4580. Fibo resistance at 1.4615 is a focus next week; bulls will want to see a close above, or profits may be booked.
USD/JPY slipped to 90.21 at midday in New York as falling US bond yields undermined the greenback. Prices edged back up at the close with bond yields ending 5 bp above their lows, ending at 3.34%. Spot closed at 90.65.
Talk of RBA offers at 0.8650/60 proved unfounded. AUD reached 0.8675 before dipping back to 0.8625 late.
Oil’s reversal and concerns (though toothless) from the finance minister over the strength of the Loonie helped USD/CAD recovery to end in the upper end of the range at 1.0780.
Have a great weekend all!
