Forex headlines for Sept 9, 2013:
- Russia proposes putting weapons under international control
- Syrian foreign minister welcomes Russian proposal
- US responds to Russian proposal to contain Syrian chemical weapons, will take ‘hard look’ but skeptical
- US Senate test vote on Syria will take place Wednesday
- Fed’s Williams will go into next meeting with open mind on tapering
- Canadian July building permits +20.7% vs +1.0% expected
- FX trading volumes rose 15% y/y in August – Thomson Reuters
- US consumer credit +$10.4B vs +$12.3B expected
- Norway elects a new government
- S&P 500 up 1% to 1672, Nasdaq closes at 13-year high
- US oil down $1.56 to $108.96
- CHF leads, JPY lags
Strong bids for the euro and cable appeared at the start of US trading and were relentless through the London close. EUR/USD touched 1.3281 and cable hit 1.5733. Cable stalled out at the 200-week moving average at 1.5738 with the June high at 1.5752 just ahead. Last at 1.5700.
Risk trades generally drifted higher thoughout the day, led a fifth consecutive day of gains in the S&P 500. There is plenty of suspicion about the move with the bond market not participating. AUD/USD was checked by a large 0.9200 expiry but eventually drifted as high as 0.9242.
Oil was under pressure with the US administration fumbling the Syria portfolio relentlessly. Obama will make last-ditch efforts to shore up support in a number of speeches and interviews over the next few hours. The latest Reuters poll suggests 16% of Americans supporting action, down from 20% at the end of August.
