Nice summary on FX street to end the week:
IMF halts Greek inspection Norway freezes payments to Greece Fitch downgrades Greece to B+ from BB+; still on review for further downgrade Lagarde: Greece in danger of default Buba's Weidmann: Lengthening maturities on Greek debt means no longer acceptable as collateral by ECB US yields fall 2.5 bp to 3.15% S&P 500 falls 0.8% Oil rises $1.05 to 99.50, reversing early losses; Gold rises to $1513 on safe-haven flows It was all Greece, all the time as EUR/USD tumbled at the end of range-bound week. From opening levels around 1.4250 (already down from Europe's 1.4345 high) EUR/USD broke support at 1.4195/1.4205, triggering heavy stops. We fell as low as 1.4139 before steadying. Commodities fell initially as the dollar rose but they reversed as the day went on. That reversal set off a squeeze in EUR/USD and sent us as high as 1.4233 in early afternoon. We end at 1.4155 after EUR/USD fell in very thin late afternoon trade, along with equities.1.4120 is key support to be eyed first thing Monday. USD/JPY was weighed down by liquidation of EUR/JPY longs. We end at 81.66, in the middle of a 81.52/81.85 range. USD/CHF and EUR/CHF were hammered this morning on risk aversion along with concerns that a deal struck between the Hungarian government and the bankers in that country to work-out CHF denominated mortgages will prompt franc buying. EUR/GBP sales (can you sense a weak-euro pattern developing) helped support cable as it vastly outperformed the euro. It closes at 1.6240 after peaking bove 1.6300 in thin afternoon trade. AUD rose above 1.0700 intraday on strong gains in industrial metals like copper. It ends at 1.0670
IMF halts Greek inspection Norway freezes payments to Greece Fitch downgrades Greece to B+ from BB+; still on review for further downgrade Lagarde: Greece in danger of default Buba's Weidmann: Lengthening maturities on Greek debt means no longer acceptable as collateral by ECB US yields fall 2.5 bp to 3.15% S&P 500 falls 0.8% Oil rises $1.05 to 99.50, reversing early losses; Gold rises to $1513 on safe-haven flows It was all Greece, all the time as EUR/USD tumbled at the end of range-bound week. From opening levels around 1.4250 (already down from Europe's 1.4345 high) EUR/USD broke support at 1.4195/1.4205, triggering heavy stops. We fell as low as 1.4139 before steadying. Commodities fell initially as the dollar rose but they reversed as the day went on. That reversal set off a squeeze in EUR/USD and sent us as high as 1.4233 in early afternoon. We end at 1.4155 after EUR/USD fell in very thin late afternoon trade, along with equities.1.4120 is key support to be eyed first thing Monday. USD/JPY was weighed down by liquidation of EUR/JPY longs. We end at 81.66, in the middle of a 81.52/81.85 range. USD/CHF and EUR/CHF were hammered this morning on risk aversion along with concerns that a deal struck between the Hungarian government and the bankers in that country to work-out CHF denominated mortgages will prompt franc buying. EUR/GBP sales (can you sense a weak-euro pattern developing) helped support cable as it vastly outperformed the euro. It closes at 1.6240 after peaking bove 1.6300 in thin afternoon trade. AUD rose above 1.0700 intraday on strong gains in industrial metals like copper. It ends at 1.0670