German fin. minister says the guarantees for the EFSF are sufficient.
German wholesale price index (m/m) 0.0%; worse than expected.
HSBC lowers its 2012 Gold forecast by 9% to $1850/oz
EUR/USD at lowest level since September 14, 2010.
The Euro reached these low levels following worse than expected monthly German retail sales, monthly Italian unemployment rate, and Euro zone industrial new order readings which came out over night. Investors are also nervous of a French bond auction which is due out later in the session as they demand higher yields to hold French debt rather than German bunds, and France is currently at risk of losing its AAA rating. Risk appetite is also softer in current trading as the FTSE 100, CAC 40, and DAX are all currently in the red.
The pair tested support at 1.28967 prior to the releases, but made a move lower after readings came in worse than expected.
SNB chairman Hildebrand on the spot….
Hildebrand’s wife wapped 400,00 CHF for USD weeks before the currency was pegged to the Euro at a lower rate; the bank does’t see anything wrong with this.
- March 10, 2011- exchanged 1.1 M CHF for USD @ .9375.
- August 15, 2011- exchanged 400,00 CHF for USD @ .7929.
- September 6, 2011- SNB pegged EUr/CHF @ 1.2000.



