- US March personal spending up 0.6%; incomes up 0.3%
- Merkel: Stabilizing euro with Greek aid, not just Greece
- ISM manufacturing PMI jumps to 60.4% from 59.6, 6 year high
- German FinMin: Greece might not need all of EUR 110 bln package
- Reuters Ipos poll: Conservatives add to lead, have chance at majority
- ECB’s Quaden: Need to closely monitor Greece
- Merkel: Portugal doesn’t need aid
- S&P 500 recoups much of Friday’s loss, rises 1.3%
- oil ends nearly unchanged after reaching $87.15 intraday, closes at $86.05
- Greek central bank says GDP to contract 4% in 2010
EUR/USD gave additional ground in US trade as the ECB’s move to suspend collateral rules requiring a investment-grade rating to accept Greek bonds heavily dented the ECB’s credibility. The ECB first insisted it would not change the rules for one state, then water down the rules,before suspending them all together today.
EUR/USD slipped as low as 1.3154 i New York before stabilizing. It rebounded to 1.3215 in mid-afternoon before easing back below 1.3200 late in the day. Protection of 1.3100 barriers is expected on further weakness.
Speaking of barriers, USD/JPY reached the 94.79 level, matching highs set in early April. Protective selling is eyed, along with exporter sales, ahead of the 95.00 level, where barriers are rumored.
AUD firmed up within recent ranges as traders anticipate one more hike from the RBA. It’s performance was fairly upbeat given the Chinese tightening move over the weekend and the announcement of a large new natural resources tax in Australia. It reached 0.9275 level and closes around 0.9260. Traders fear a bit of “buy the rumor, sell the fact” after the RBA…
GBP/USD was supported against the crosses today by a Reuters-sponsored poll which shows the Conservatives gaining ground in Labour districts and potentially having the enough momentum to claim a slight majority.