Thursday, August 4, 2011

BoJ Intervention

Bank of Japan intervention in the currency market proved to be the straw that, at least for the past several hours, has broken the camel's back. S&P futures were rising and bonds falling; no more.

Unsurprisingly, the Yen is down, down, down against the USD. For rather opaque reasons, the $A and $C have reversed their early course, and are down sharply against the USD.  € and £ are somewhat lower.

This surprise means the pre-session targets are all DOA. It looks like the $C would dearly love to reach 9778 and the $A 1.0525, if the morning US Employment report doesn't turn things around -- and it may not, with the big picture report due out Friday.


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