Intraday Market Thoughts

Euro Hits One-Week Low

by Adam Button
Oct 9, 2012 22:27

The euro unwound all its gains from last week, falling to the lowest levels of the month. The Australian dollar was the best performer on Chinese stimulus hopes. The upcoming session is light on data but may feature some interesting central bank commentary. A new edition of Premium Insights will appear later this evening.

The market struggled to find a theme but worries about Europe and the global economy eventually emerged and the euro sank as low as 1.2858 after opening the week above 1.30.

The IMFs warning about slowing growth outweighed signals that Greece will receive its next aid tranche. Middle East tensions also hampered sentiment and sent oil $3 higher to $92/barrel.

European leaders continue to slowly move toward unity after a summit paper circulated that appears to endorse a Eurozone budget. The Austrian finance minister also said that 11 countries are prepared to commit to a financial transaction tax.

The S&P opened flat but deteriorated to close down 1%. However, after the bell, aluminum giant Alcoa posted revenues that slightly beat expectations.

The focus shifts to Australian when, at 2230 GMT, Westpac releases consumer confidence data. The index was at 98.2 in September and is likely to deteriorate despite the RBA rate cut.

At 0030 GMT, Yellen speaks in Tokyo. Later, the ECBs Noyer and SNBs Jordan will also speak at the same event. With EUR/CHF above 1.21, it will be interesting to hear commentary from the SNB leader.



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