- ECB is mulling interest rate threshold for bond buys - Reuters reports on Der Spiegel article
- ECB: No comment on plans to cap peripheral sovereign yields
- German FinMin spokesman: Does not know of any ECB plans to target bond spreads
- Bundesbank: Remains critical of ECB bond buying plan
- Goldman Sachs – It’s time to bet on a big comeback in Europe - Business Insider
This is what I call the ‘Bernie the Bolt’ market. If you never watched The Golden Shot you’ll not have a clue what I’m babbling on about.
Suffice it to say, WE’RE GOING NOWHERE FAST!!!!!!!
We sit at 1.2322, a whole 8 pips lower than when I arrived. Inbetween we’ve had a little volatility and price action has spanned a 1.2315-1.2369 range.
European traders entered the fray, their attention focused on the weekend article in Der Spiegel magazine (see first headline above) Spanish and Italian bond yields headed lower right from the get go lending the single currency support and we made it to 1.2369.
We’d already topped out slightly, when comment from FinMin spokesman (see above) and comments from the Bundesbank (see above) accelerated the sell-off.
Market continues to struggle mightyly for clear direction, with 1.22400-1.2385 proving durable range parameters. Not surprisingly stops seen gathering through 1.2240 on the downside and 1.2400 on topside.
USD/JPY unchanged on day at 79.50.
Cable unchanged on day at 1.5695.
AUD/USD 10 pips firmer at 1.0455. BIS has been seen selling in 1.0455/60 area. Buy stops reportedly gathering through 1.0470.