Stocks valiantly tried to hold gains after the poor unemployment report but they’ve since succumbed and are now in negative territory. Sharp upward revisions to September and August data are weighing on sentiment. EUR/JPY’s modest pop after the data has reversed and EUR;/USD is back to pre-data levels at 1.2770.
One interesting headline crossing the wire is that the Swiss National Bank has initiated a swap line with the Polish central bank to provide Swiss franc liquidity. Central European borrowers are struggling as the Swiss franc rises as many played the carry trade, borrowing CHF to buy homes as interest rates were much lower than domestic Polish rates. That was all good until the franc surged versus local currencies.
