Forex Live US Wrap- Risk Rally Rocks Dollar
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US CPI rises 0.6% in August, core rises 0.1%. Core falls to 1.9% y/y from 2.1% prior.
US retail sales rise 0.9% in August; most of rise due to price of gasoline.
US industrial production falls 1.2% in August; much weaker than forecast.
University of Michigan consumer sentiment index rises to 79.2 from 74.3.
US business inventories rise 0.8% in July.
Protectors break into US embassies in Tunisia and Sudan.
Jean-Claude Trichet praises Draghi”s OMT plan.
US Marines being sent to Yemen to protect embassy.
ECB’s Asmussen warns against complacency on reforms from governments since interest rates have fallen.
IEA chief: Oil prices unbearable for consumers.
Monti/Merkel congratulate one another on a good week for the euro.
Egan-Jones cuts US rating to AA- from AA.
S&P closes up 0.4% at 1465.
US 10 year note rises 15 bp in yield to 1.87%.
A very strong early session for risk assets with EUR/USD extending its gains to 1.3169 and cable to 1.6254
before some pre-weekend profit-taking set in..
USD/JPY and EUR/JPY were big movers today as short-positions in those pairs were covered and EUR/JPY broke through and close well above its 200-day moving average at 101.75. It reached 103.00 before closing at 102.82..
Closing levels:
EUR/USD 1.3122
USD/JPY 78.35
GBP/USD1.6230
AUD/USD 1.0555
EUR/JPY 102.82
