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Prior to launching ForexLive, Jamie Coleman spent nearly twelve years at Thomson Financial as managing analyst of the institutional forex product IFR Forex Watch. In 2007, he left the Forex Watch team to launch a retail forex-oriented site which became the popular Reuters FX Hub. FX Hub fell... More
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  • ForexLive US wrap: Draghi calms jitters; solid auctions help euro 0 comments
    Jan 12, 2012 4:55 PM | about stocks: FXE, FXF, FXB, USD, UUP, UDN
    • ECB, Bank of England leave rates unchanged at monthly meetings
    • Senior German MP: Not sure Greece can be saved
    • US retail sales rise 0.1% in December; ex-autos fall 0.2%; much weaker than expected
    • US weekly jobless gains jump 24,000 to 399,000
    • ECB’s Draghi: Tentative signs of stabilization in euro zone; LTRO is supporting banks, allowing them to refinance expiring bonds; interbank lending thawing; ECB expanding collateral further for next 3-year LTRO
    • US business inventories rise 0.3%; sales rise 0.3% in November
    • IIF: Time running short on Greek debt restructuring talks
    • IMF mission to Greece to start next Tuesday
    • Handlesblatt: Germany to lower GDP outlook to 0.75% from 1% for 2012
    • UK Chancellor Osborne says euro will survive the crisis
    • US budget deficit rises to $86.0 bln in December from $78.1 bln in December 2010
    • Bloomberg: EU oil embargo against Iran may be delayed for six months
    • US President Obama asks Congress to raise debt ceiling $1.2 trln
    • S&P 500 rise 0.25% to 1296; Milan rises 2%
    • US 10-year note rises 2 bp to 1.925%; Italy tumbles 37 bp to 6.66%
    • WTI falls $1.80 to $99.07; gold rises $8 to $1650

    The long-feared euro short-squeeze finally unfolded today as sovereign debt markets breathed a big sigh of relief after successful auctions in Spain and Italy. An even-temper Draghi helped bolster confidence as well as he highlighted the positive impacts from the 3-yr LTRO in late December and the prospects for a second next month.

    EUR/USD tripped stops above 1.2780 and above 1.2820/25, reaching 1.2846 before stalling ahead of the 10-day moving average at 1.28475. Offers are seen heavy between 1.2850 and 1.2860; stops are seen clustered in the 1.2865/70 area. Dips were quite shallow in afternoon trading.

    Traders noted heavy covering of EUR/AUD shorts and EUR/CAD shorts during the US morning with those flows helping undermine the commodity currencies intraday before a recovery in afternoon trade. AUD at the upper end of a narrow range, at 1.0340. 1.0290/1.0350 was the NY range.

    EUR/CHF slipped through stops below 1.2100 today with apparently now sign of the SNB. We dipped to 1.2085 before closing at 1.2102.

    Stocks: FXE, FXF, FXB, USD, UUP, UDN
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