The price action in the NY session was perplexing to say the least. Risk aversion ruled nearly the entire session, but a last minute push in risk assets saw the USD lower overall. Stocks surged in the last hour of trading ostensibly on the news that the Obama administration is working on a program that would subsidize mortgage payments as part of the Treasury plan announced earlier this week. Much like the Treasury plan it is thus far light on details. In the end, the S&P closed up a modest +0.2% after being down more than -3.0% on the day. This late day flight to risk did not stop gold from heading higher and the metal jumped $8 to 947 on the day. Above 950/955 should open up potential toward 1000 next.
In FX land, the buck eventually gave back the session gains. EUR/USD closed up a modest 30 pips near 1.2860/70 after plunging as low as 1.2720 in the span. The next barrier to upside should come near today's highs by 1.2940/50 next. The yen crosses rocketed higher as well with USD/JPY jumping about 100 pips to the 91 mark while EUR/JPY added a more impressive 160 points into the 117.00/10 area. USD/CAD made a try towards 1.2550 today but found solid resistance much like in the last few sessions. The pair eventually closed the session flat near the 1.2430/40 zone.
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