- ECB bond buying slowed to a trickle last week
- S&P: more upbeat on Ireland than most
- Greece considering prolonging repayment of EU/IMF aid
- Obama proposes $50 bln in stimulus spending on infrastructure
- NABE reduces US GDP outlook in 2010 and 20100 to +2.6% from 3.2%
- Yellen: Low rates can cause bubbles
- PBOC’s Zhou: Rapid rebalancing risks overshoots, asks for patience
- French Senate approves age hike for full pension to 67 from 65
- S&P 500 unchanged; US bond market closed; gold rises to $1353.50
Currencies were unable to build on build on early Asian gains after the IMF left the global currency war to another day. The buck retook some of the ground lost in recent sessions, especially versus the EUR.
EUR/USD fell below the hourly uptrend at 1.3890 and the daily uptrend around 1.3877 on an intraday basis and flirts with the latter level late in the day. A close below the daily uptrend will be another signal for some of the longs with large gains to begin taking profits. A break below Friday’s 1.3835 low and the 10-day moving average at 1.3782 as further signals that the impulsive EUR rally has run its course.
Undermining EUR/USD from a fundamental perspective today was jawboning from the ECB’s Quaden, who called the EUR move brutal and news that Greece may spread out future payments owed to the IMF and EU as part of the bailout package put together this spring. News that France raised the age to receive a full state pension to 67 from 65 helped boost EUR/USD modestly from session lows in the high 1.3860s.
USD/JPY edged up withing recent ranges after triggering an 81.50 barrier overnight. We ran into resistance at 82.15/20 again in NY trading, leaving stops at 82.25 untopuched. Japanese offers are eyed at the 82.50 level.
AUS/USD lost some ground today, losing about 0.382% of the rally to today’s 0.9906 high. A move below 0.9710 is seen as needed to signal a top in AUD/USD near-term. We end at 0.9835, toward the bottom end of the intraday range with the dollar somewhat firmer across the board.
Cable ends the day on its lows of 1.5870 as the dollar recouped some of the ground lost in recent sessions. Uptrend support for GBP/USD is nearby at 1.5860, so like EUR/USD, we may be close to signaling at least a pause in the dollar slide, currency rally.