- US retail sales fall 0.1%; fall 0.6% ex-autos; weaker than expected
- US weekly jobless claims rise 4,000 to 558,000; continuing claims fall 141,000 as benefits run out for many
- South Africa and Denmark cut rates
- US business inventories fall 1.1%
- US auctions $15 bln 30-year bonds at 3.541%; bid to cover 2.54
- Merkel: Slide in German economy may have ended
- IMF formally approves $150 bln SDR allocation
- Australian mining firm Felix Resources acquired by China for A$3.5 bln
- US ten-year Treasury yield falls 12 bp to 3.60% after solid 30 year auction, weak data
- S&P 500 rises to 1012.73, up 0.7% despite poor retail sales
The currency markets saw a heavy dose of volatility just ahead of and after the US data this morning followed by choppy range-trade there after. EUR/USD was sold off in early New York trade to the 1.4240/45 from which it quickly launched a rally to the 1.4325/30 level. After reports of Asian central bank sales in the 1.4260/70 region the market was caught off guard by talk of buying from those same accounts as prices began to sprint higher.
Poor us retail sales and jobless data helped send EUR/USD down to 1.4270 briefly but we were back at the highs before long. A pullback to 1.4255 was seen in the US afternoon as stocks turned negative for an instant, but prices recovered along with shares and end at 1.4290.
USD/JPY was undermined by falling US yields for much of the session. It dipped as low as 95.05 after triggering stops below 95.10 support and edged up to 95.30 at the close. Comments from DPJ officials,the presumed ruling party after upcoming elections, that they would tolerate a firmer JPY undermined the greenback as well.
Aussie was bid to old boots throughout the session with copper breaking to a fresh 11 month high and the Chinese bid for Felix Resources supporting as well. It spent most of the session above the 0.84 level.