- US housing starts fall 16.8% in January
- US import prices fall 1.1% in January, sixth drop in a row
- US industrial production falls 1.8%
- ECB’s Bini-Smaghi: Challenges ahead for euro will be considerable; hits out at weak pound
- Bernanke: Outlook for economy dismal, will do everything to support economy
- FOMC lowers forecasts; explores inflation target
- Obama unveils mortgage relief program
- Gold closes on the highs at $984
- Stocks end flat in the US
EUR/USD fell through important support at 1.2548 in New York trade this morning as Bini-Smaghi acknowledged considerable challenges ahead for the euro. It fell to a low of 1.2514 as the market targeted barriers at 1.2500.
USD/JPY breached a barrier option at 93.00 and ran toward 94.00 with little opposition until after Europe left for home. Prices reached 93.94 before dipping into the 93.20s before recovering to close in the upper reaches of the range. Technicians target January highs at 94.63 and see an explosive rally if that level is overcome.
GBP/USD was belted in London on fears of downgrade to the UK’s credit rating and on moves toward quantitative ease revealed in the MPC minutes. Short-covering and central bank buying helped boost the pair from the lows. Most of the afternoon was spent between 1.4200/50.
