Forex headlines for August 12, 2013:
- Gold gains $20 on rising China demand
- Fed guidance more powerful than effect of QE – Fed study
- Italian Prime Minister met with Monte Paschi Chairman today to discuss bank situation
- Germany trims its planned 2014 bond sales
- Japan’s Prime Minister Abe has called for a study of lower corporate tax rates – Nikkei
- US July monthly budget deficit $97.6 billion vs $94.5 billion expected
- Blackberry hangs the for sale sign
- Portugal agrees to €4.7bn spending cuts with Troika
- Money coming in on October taper
- The floodgates are open for EU banks to load up on US municipal debt
- S&P 500 down 0.1% to 1690
- USD leads, AUD lags
For an ultra-quiet news day there was some decent action in markets.
EUR/USD bottomed at the start of US trading at 1.3278 after falling overnight. It chopped sideways and then caught a bid ahead of the European equity close, eventually hitting 1.3322 before settle back around the big figure.
USD/JPY peaked at the start of US trading at 96.91. It was the second failed attempt to break 97.00 and that sparked a selloff, sliding down to 96.40. After Europe closed, it marched back to 96.80.
Cable was on the defensive throughout the session. Bids at 1.5460/55 held repeated slides and every bounce was more shallow than the previous one. Last trade near the session low at 1.5463.
USD/CAD tried to rebound from the losses on Thursday and Friday but offers at 1.0320 capped the rebound and it chopped around 1.0300 in quiet trading.
The Aussie was soft despite talk of stimulus in China. It’s trading near the lows of the day at 0.9144.
Gold was the big story on the day as it climbed toward resistance (July high) at $1351. The high was $1344 but it has drifted back to $1336.
