- SEC Chair: Mark-to-market guidance in Q2, uptick rule by April
- FASB Smth: Guidance to be issued soon, suggests some leeway
- Treasury yield drop this afternoon sparks talk Fed may have bought Treasuries.
- Canadian new home price index falls 0.6%.
- JP Morgan CEO says bank was profitable in Jan and Feb
- Obama to meet Chinese foreign minister in Washington Thursday amid lingering tensions
- S&P 500 closes up 0.25%, 10 year notes at 2.89% and gold at $d905
EUR/USD broke to the topside for good in late New York trade as US equities got a boost from Jaimie Dimon’s comments on a profitable first two months of the year. Concerns that Chinese/US squabbling over the US naval presence of China’s coast could prompt less dollar buying down the road helped spook the market.
Prices earlier in the day stalled in the 1.2805/15 region on three occasions before finally breaking higher for good. Steady central bank bids were spotted in the 1.2650 area in Europe and as high as 1.2780 in New York. Small CB sales were seen above 1.2800.
Cable closed out the session on its highs on a day when EUR/GBP rallied as high as 0.9300 before stalling. Once the cross stalled cable was able to keep pace with EUR/USD. On the news front, the BOE began buying gilts today, embarking on QE.
EUR/JPY stayed range-bound today, failing to take advantage of the EUR/USD rally. USD/JPY was pressured as a result, down to the 97.10 area before stabilizing. Frustrated longs threw in the towel once USD/JPY slipped back below 97.90.
AUD/USD was lifted early in the session by a strong rally in global equities, squeezing shorts taken on the back of poor Chinese trade data overnight. 0.6560 barriers are within striking distance of the dollar’s downward momentum persists. The pair closes at 0.6515.