- ECB’s Weber: Timing of stimulus removal key; unemployment, insolvencies rising in Germany
- Fed Watcher John Berry sees US upturn early in 2010
- Geithner pens op-ed with finance ministers of Singapore and Indonesia: We welcome more market-oriented FX rates, US should save more, China save less, consume more.
- S&P breaks 1100 intraday, closes at 13-mo high of 1098.50; gold closes near new highs of $1118; oil up 0.25 at $79.30
EUR/USD pulled back from opening levels in the 1.5030s after a run at the London highs near 1.5050 and trend highs at 1.5061 came up shy. Trailing stops below 1.5000 and especially 1.4970 attracted price action. Dealers were disappointed that the single currency was unable to make a new high despite updrafts in both gold and share prices.
Cable was quite volatile, perhaps even a bit more than usual today. Reaction to Kings comments after the inflation report were like an ink-blot test. Some saw them as hawkish in that he sees accelerating growth and rising inflation in the near-term while others focused on his refusal to categorically rule out further QE. Prices followed EUR/USD lower late in the London session, triggering stops below the 1.6600 level. We slipped as low as 1.6537 before stabilizing and closed at 1.6570. 1.6600 is short-term resistance.
USD/CHF held 1.0030 trend lows this morning and rebounded into the 1.0090s in early afternoon before slipping back to 1.0080 at the close.
Someone forgot to tell USD/JPY that forex markets were open on Veterans Day. We traded the bulk of the session between 89.80/90 with EUR/JPY moving in lockstep with EUR/USD.