- US weekly jobless claims rise 15,000 to 465,000
- Beckner: Fed not as close to QE as market thinks
- US existing home sales rebound less than expected, second worst month on record
- Conference Board’s index of leading economic indicators rises to 0.3% in Aug
- Irish Examiner: Anglo Irish Bank may default on subordinated debt
- EU to propose nations make penalty deposits of 0.2% of GDP for breaking budget rules
EUR/USD traded in choppy fashion during the New York session, opening near the lows, around 1.3310 before jumping to 1.3380 on heavy buying from a European corporate. Prices slipped quickly from the highs amid selling from the BIS and Russia. An article by respected Fed-watcher Steve Beckner expecting the Fed is much less hellbent on embarking on further QE than the market is pricing helped drive EUR/USD to fresh lows of 1.3305 before another bounce higher in the range. 1.3365 capped subsequent rebounds.
EUR/GBP was sold heavily today by real money and leveraged accounts. Demand linked to an expiring option tomorrow at 0.8500 stalled the decline in the 0.8475 area.
GBP/USD tripped stops above 1.5730, reaching 1.5742 but continues to struggle to build as sustainable base above the top of recent ranges in the 1.5700/20 area.
USD/JPY fell as low as 84.26 amid talk of Japanese buying just above a crop of stops lying just below the 84.25 level. We jumped to 84.52 on the Beckner article but the gains did not stick.
AUD/USD opened easier on the day as risk aversion rose on European debt woes and poor European manufacturing data. Prices improved as risk aversion waned during the New York session. From 0.9470 lows we climbed back to 0.9535 at mid-afternoon.
Sean will be along in a few hours..Have a great afternoon.