Risk aversion was once again the order of the day in NY trading and the buck headed higher as a result. Early news reports that the Obama bad bank idea could cost upwards of $2 trillion and later statements by a US Senator that it could top $4 trillion saw both Treasuries and stocks under pressure all session. The S&P sank more than -3% and was sitting just above the critical 840 support zone. Bonds meanwhile were markedly lower with the 10-year yield jumping a massive20 basis points to 2.86% while the 2-year added 5 bps into the 0.95% area. Gold, the ultimate risk aversion asset, popped $20 to $908/oz to boot.
EUR/USD was crushed more than -150 points towards 1.2950/60 as overall risk aversion coupled with comments from George Soros that the EUR will disappear unless there is global coordination to save financial markets weighed heavily on the pair. EUR/JPY sank more than -150 pips as well and was sitting near 116.50 ahead of the close. The 116 level contained the downside on various tries and looks to be the next trigger for accelerated weakness here. USD/JPY was practically unchanged near the 89.90/95 zone.
Upcoming Economic Data Releases (Asia Session) prev est
- 1/29 23:00 GMT AU Conference Board Leading Index NOV -0.50% - -
- 1/29 23:00 GMT NZ Reserve Bank Governor Alan Bollard Speaks 29-Jan
- 1/29 23:15 GMT JN Nomura/JMMA Manufacturing PMI JAN 30.8 - -
- 1/29 23:30 GMT JN Jobless Rate DEC 3.90% 4.10%
- 1/29 23:30 GMT JN Job-To-Applicant Ratio DEC 0.76 0.73
- 1/29 23:30 GMT JN Household Spending (YoY) DEC -0.50% -3.60%
- 1/29 23:30 GMT JN Natl CPI YoY DEC 1.00% 0.40%
- 1/29 23:50 GMT JN Industrial Production (YoY) DEC P -16.60% -20.00%
- 1/30 0:01 GMT UK GfK Consumer Confidence Survey JAN -33 -35
- 1/30 0:30 GMT AU Private Sector Credit YoY% DEC 8.20% 7.50%
- 1/30 4:00 GMT JN Vehicle Production (YoY) DEC -20.40% - -
- 1/30 5:00 GMT JN Housing Starts (YoY) DEC 0.00% -7.70%
- 1/30 5:00 GMT JN Annualized Housing Starts DEC 0.954M 0.954M
- 1/30 5:00 GMT JN Construction Orders (YoY) DEC -12.50% - -
