- Goldman recommends clients book profits on crude, copper, cotton, platinum basket
- 2-year German-UST spread closes at 108 bp; widest sine December 2009
- IMF World Economic Outlook: Asia risks overheating; West to grow slow
- Fed Vice-chair Yellen: Commodity spike does not warrant tighter policy
- Ifo Sinn: Greece insolvent; needs debt restructuring
- Fed’s Evans: Commodity spike unlikely to drive Fed tightening
- Oil falls $3.61 to $109.17
- Gold falls $10 to 1462.50
- S&P 500 falls 0.3% at 1324
- US 10-year note falls 1 bp to 3.58%
EUR/USD traded in a relatively arrow range in New York, falling early in the day on profit-taking to 1.4420 before bouncing briefly to the 1.4465 level. We sold off again later in the day as commodities gave back some of the ground picked up late last week. We end at 1.4425.
USD/JPY and JPY crosses slipped back today as well with a today a “risk-off” session of sorts. After stalling repeatedly in the 85.50/60 region last week we slipped as low as 84.51 from where we steadied. Stops are reported below the 84.50 level.
GBP/USD was quite volatile. EUR/GBP profit-taking helped propel cable briefly above 1.6400 triggering stops and options-related buying. Cable held the old highs at 1.6430 and soon were were tumbling again. We fell as low as 1.6340 late.
AUD/USD fell back along with the commodities complex. Small stops below 1.0500 were triggered late in the US session1.0480 is minor support; more important support is down at 1.0415/20.