The Euro vs US Dollars has returned to European opening
levels after a fairly volatile session so far. The initial
move was a good deal lower. The USD buoyed by the 10-yr note
remaining above 4.00% was further helped by shocking German
retail sales data, which came in much weaker than f/c at
-1.7% m/m and -1.0% y/y. There was also a scare mongering
Telegraph article also (the Euro suffering from 'reserve
currency curse' as investors pull out) as negatives stacked
up and stops were tripped at intermittent levels between
1.5460/00. However, on the way down, an ACB was a consistent
buyer and together with positive month-end related and
corporate flows the euro eventually won out. A return to
ranges came as EU flash CPI booms 3.6% y/y and the market
turns its attention to US recession watch and the Chicago
and Michigan.
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