- Spill over from the warning from Moody’s that all the euro zone sovereigns are on review helped send EUR/USD as low as 1.3163, lowest since early October
- Greek FinMin: Deficit to be worse than thought; impacted by political uncertainty
- Fitch sees slower global growth in 2012; lack of comprehensive euro zone solution increases short-term pressure on sovereign credit ratings
- ECB bought 0.635 bln of European debt last week; much lower than recent weeks
- Cameron defends UK veto at EU summit
- Reuters: Commerzbank in talks with German government over state aid
- US fiscal deficit dips in November
- S&P 500 falls 1.5% to 1236
- US 10-year note falls 4 bp to 2.02%
- WTI falls $1.39 to $98.03; gold falls $45 to $1666
EUR/USD opened weak in the US and ended weaker. We immediately set about trying to trigger barriers at 1.3250 and succeeded early in the session. Solid support between 1.3210 and 1.3230 slowed the decline but after several hours, that too gave way, as did a barrier at the 1.3200 level. We slipped as low as 1.3163 before stabilizing. We tried one lukewarm rally but faltered ahead of 1.3210/20, which is now acting as resistance.
Euro was sold versus virtually every currency at the 16:00GMT fixing, emblematic of real-money investors continuing to flee European capital markets. AUD, CAD, GBp, and JPY all saw buyers at the fixing but most were weighed down by sales versus the dollar today.
Gold proved no safe haven, sliding over $50 intraday as inflation fears dwindle amid slack global demand.