- US CPI rises 0.3%/0.2% ex-food and energy, as expected
- China lowers reserve requirements for certain rural banks
- JPM’s Dimon: LTRO wasn’t sufficient to fix Europe’s problems
- Loss of Dutch AAA rating could push yields up 100 bp: ECB’s Knot
- Spanish 10-year yields rose 17 bp to 5.99%, credit defaults reach record 498 bp; shares fall 3.5%
- Univ of Michigan sentiment index falls to 75.7 from 76.2
- ECB’s Knot: ECB “ver far” from resuming bond buying
- Tensions rise between ECB managing board and governing council
- Spain would be dead without ECB funding; Spanish official
- UK affirmed at AAA by S&P; outlook stable
- Bernanke makes no mention of economy/policy in NY remarks
A strong session for the dollar as the disappointing Chinese GDP and renewed Spanish sovereign debt fears hung over the market.
EUR/USD fell throughout the morning from opening levels of 1.3175 to 1.30695. We close at 1.3080.
EUR/JPY closes on lows of 105.75 from 106.75 opening.
AUD down at 1.0370 from early 1.0475.
USD/JPY narrowly range-bound: 80.82/81.13.