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HISTORICAL DETAILS
% Change
1 Wk 0.24%
1 Month -1.35%
3 Months -3.27%
6 Months -3.47%
1 Year -8.67%
52 WEEK
High 88.12
Low 76.25
BLOOMBERG MEDIAN FORECASTS
Q2 2011 83.00
Q3 2011 83.00
Q4 2011 85.00
Q1 2012 87.50
DAILY DETAIL
Overnight, we saw optimism flow through risk assets and US treasuries on hopes of a breakthrough in the debt ceiling talks. President Obama raised expectations of a reasonable debt reduction plan by warming to the ‘Gang of Six’ (Bipartisan senators) plan to cut $3.5-3.7 trillion off the deficit over ten years. Importantly, the US house Republican Leader, Mr Cantor, said the plan included some constructive ideas. However, for it to really gain traction we will need to see more house Republicans warm to it; the market will pay close attention to any views that are reported tonight. The buying we saw in thirty-year treasuries was testament to the relief that both parties are making a concerted effort to push through an agreement. Economic data was also extremely positive, with both building permits and housing starts rising and importantly beating expectations. Tonight we see the release of US mortgage approvals; however this is highly unlikely to provide much of a catalyst. With USD/JPY moving between 79.08 and 79.32 in Asian trade, it seems that short-term price drivers will invariably come from any official’s narrative on the debt ceiling debate; any positive comments from Republicans will see the USD push higher on the session. Chris Weston, Australia
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