- Greek PM Papandreou: EU/IMF plan a success, situation manageable
- Canada’s Ivey PMI index rises to 57.8 in March from 51.9 in February
- Canada’s Harper: Worried more about loss of competitiveness than any particular exchange rate level.
- CNBC: US officials see indications China to make a currency move in coming weeks
- US sells $21 bln 10-year notes at 3.90%, bid-to-cover 3.72
- Fed’s Dudley: Job growth too slow; Fed funds to stay low for extended period
- Fed’s Bernanke: Economy not out of the woods
- Fed’s Hoenig: Bernanke and Dudley are on crack; Fed funds should be 1%
- US consumer credit falls $11.5 bln in February after $10.6 rise in January
- S&P 500 falls 0.6% to 1182
- US yields tumble after strong auction; 2-yr notes to 1.07%; 10-yr notes to 3.87%
- Gold closes at $1149, highest since January; oil falls $1.15 to $85.70
EUR/USD fell to its lows early in the US session at 1.3327 as the Greek debt crisis intensified further. Both CDS and spreads over bunds rose to over 400 bp today showing that the risk of a Greek default is perceived of as being as high as ever despite the EU/IMF backstop. Central bank buying was seen several times in the 1.3340s during NY trade as well as the 1.3360 are late in the London morning. We close right between those two levels at 1.3353.
USD/JPY was offered throughout the US session. sliding as low as 93.15 late in the day. Falling US yields, EUR/JPY selling on on the back of Greece and paring of stale longs all contributed to the JPY strength.
GBP/USD reversed early weakness after poor service sector PMI in the UK, rallying to 1.5280 in New York afternoon trade, just like it did yesterday.
AUD followed its typical pattern of rising throughout the US session, reaching the 0.9297 level before relenting. Late-afternoon risk aversion helped spark some modest profit-taking, knocking the pair back to the 0.9270s.
USD/CAD saw buying in good size from a US investment bank in the 1.0020s this morning after bouncing from 0.9975 support. Jawboning from PM Harper helped prompt a further bounce to the 1.0050s before faltering.
The SNB launched a drive-by raid late in European trade. After sitting on the bid at 1.4320 and ran price briefly to 1.4354. The central bank is trying to make the market inhospitable to shorts, with limited success.