- TIC data shows modest rebound in demand for US securities in August
- US industrial production surges 0.7%; Capacity use 70.5%
- University of Michigan consumer sentiment survey 69.4 in October from 73.5 in September
- ECB’s Tumpel-Gugerell: Crisis policy cannot continue forever but now is not the time for exit strategy. Similar sentiments from Buba’s Weber.
- German EcoMin Guttenberg: No cause for concern on dollar; German competitiveness does not depend on exchange rate; raises GDP forecast to 1.2% for 2010
- EU’s Juncker: Going to China with Trichet, Almunia before year-end; EUR not a concern, yet; stronger EUR could slow recovery
- Fed’d Fisher: Dollar outlook depends if US policy-makers “get it right”
- Aussie trade minister: Strong AUD reflects economic fundamentals
- Canada’s Harper repeats he shares BOC’s concern of effects of strong CAD
- US reports FY 2009 deficit of $1.4 trln, September deficit $46.6 versus year-ago surplus of $45.7 bln
- Oil ends week near highs at $78.57, up 8% for the week, Gold at $1052
- IMM records record GBP short position of 65k contracts
- US 10-year note yield falls 3 bp to 3.41%
- S&P 500 falls 9 points to 1088
New York saw EUR/USD trade to fresh session lows just below 1.4850 for a second day running on Friday as the market made a run at a growing parcel of stop-loss sell orders clustered around the 1.4840 level. Failing to trigger the stops, the market soon rebounded. By the 15:00 GMT London fixing, EUR/USD was in demand. Prices rose briefly to about 1.4915 but reports of BIS sales near the highs were soon heard. The bulk of the afternoon was seen with prices hovering close to the 1.4900 level.
AUD/USO was unable to take advantage of anticipation of rapid interest rate hikes from the RBA in the coming months, bullish comments from the RBA governor on the currency itself nor comments from the Aussie trade minister that the strong AUD reflects economic fundamentals. Much of the US session AUD was consolidating losses between 0.9140 and 0.9200 with longs looking to trim positions on rallies.
GBP/USD consolidated gains today with hedge funds still looking to unwind carry trades. GBP/NOK and GBP/BRL were two pairs mentioned today in addition to the more closely watched GBP/JPY and EUR/GBP. Record GBP shorts on the IMM (as of Tuesday) show just how ripe the pound was for a rebound.
USD/JPY ran into exporter sales in the 91.30s and failed to trigger stops near the 91.40 level it spent most of the session consolidating in the 90.80s and 90s.
Great weekend, all!