Forex headlines for June 24, 2013:
- Fed’s Dudley: Policy can’t work with financial instability
- Fed’s Kocherlakota: Backs QE buying until unemployment falls below 7%
- Fed’s Fisher says markets acting like ‘feral hogs’
- Chicago Fed May national activity index -0.30 vs -0.10 prior
- Dallas Fed manufacturing index +17.1 vs +11.2 prior
- Coeure: ECB can tackle liquidity, not solvency problems
- Stournaras remains Greek finance minister in cabinet shakeup
- Berlusconi sentenced to 7 years in jail in underage prostitution case
- Big rises in European bond yields
- US 10-year yields rise to 2.66% then retreat to 2.55%
- S&P 500 down 1.2% to 1575
- AUD leads, CAD lags
USD/JPY came into US trading on an upswing after Iwata said the BOJ still has policy options but it fell hard and fast in the US dollar rally. From 98.35 it slumped to 97.22. Buyers slowly waded in as sentiment improved. Last at 97.64.
EUR/USD spent the morning in some sort of twilight zone zig-zag, chopping between 1.3060 and 1.3110 a dozen times. As sentiment improved it finally kicked higher to 1.3044 before settling back to 1.3125.
EUF/CHF touched a few pips below the June low of 1.2222 but that enticed the buyers and it marched back to 1.2250.
The Canadian dollar was the early laggard and USD/CAD rose to a cycle high of 1.0556 but the peak came early in the session and as stocks pared losses, the loonie rebounded to 1.0449.
It was a volatile day but the overall changes in the market were slight, with most pairs finishing the day with less-than 30 pip moves.