- Large moves continue in EUR, GBP and JPY
- Greece launches PSI deal, needs more than 75% participation
- ECB’s Weidmann: no discussion of another LTRO
- ECB’s Nowotny sees no need for more LTROs
- COT: EUR speculative shorts scaled back
- Germany softens on firewall
- Plosser says MBS buys crosses line
- Dudley says govt needs a fiscal plan
Fed’s Williams not against further easing - Bullard: Prefers Treasurys to MBS but only if inflation falls
- IIF’s Dallara expects high take up in PSI
- US new homes sales 321K vs 315K exp
- Final UMich consumer confidence 75.3 vs 73.0 exp
- BOCs Carney: Rates appropriate
- IAEA says Iran continues nuclear work
- Brent hits $125.55, WTI nearly $110
- IMF’s Lipton says high oil prices a downside risk
- S&P 500 +0.2% to 1366, highest since June 2008
Where to start? EUR shorts and JPY longs were squeezed badly. EUR/USD continued to bust through stops, tracking from 1.34 to 1.3487 in US trading.
USD/JPY touched 81.11 at the end of the session, marking a weekly close above the weekly ichimoku cloud. Offers at 80.65 held off the assault until the European close but afterwards it was all to the upside.
EUR/JPY hit 109 after starting the day at 107 and it was almost a straight-line move.
Large position unwinds in EUR/AUD spilled over to AUD/USD and held the pair under 1.07. Flows were a major theme as yen and euro crosses triggered moves elsewhere.
Gold was quiet but oil gained for the seventh day, falling just short $110 in another one way move.