ForexLive NY Wrap

EU summit exceeds expectations. U.S. personal income rises 0.2% spending flat . Michigan consumer sentiment index falls to 73.2 from 74.1 Chicago PMI at 52.9% better than expected European stocks close on the highs ,up 4.2% to 6.6% Fed's Dudley: FOMC will act again if need . IMF "strongly welcomes decisions by the EU council". Merkel : Direct ESM recapitalization could take a year . Merkel: We stand by the Euro, our stable currency. Merkel: Bailout assistance tied to conditionality. ECB's Asmussen: EU summit wasn't a showdown against Merkel . Asmussen: ESM can only fund banks directly once supervision is established (decision by year end). Asmussen: Joint euro bonds would make monetary policy much easier ,BUT only if fiscal controls are in place. Reminds market ESM can't lend to banks yet. German Parliment holding it's vote on a permanent euro zone bailout and budget rules . Both parties expect passage later tonight of ESM despite new elements . German Parliment approves fiscal pact as expected,wins two-thirds majority. Fed's Bullard : "To get QE3 would need to see a sharp drop in economy: deflation risk. Doesn't see this happening. S&P 500 up 2.49% U.S. 10-yr.Bond yield up 0.7bp to 1.6518% Gold at 1,598.10 up $ 45.48 WTI at 84.78 up $ 7.08 NY market woke up to an EU summit surprise rally (Asia seeing the move in the euro over 1.2600). Buyers immediately surfaced in NY at 1.2580 ish  sending the EUR another big figure higher to 1.2692. All other currencies followed suit making new highs ( Usd/JPY being the exception now closing near resistance level of 80.00). GBP above 1.5700, USD/CHF .9459, USD/CAD 1.0162,and AUD at 1.0256 all recent highs before backing off the rest of the day in slow trade. Profit taking and players licking their wounds  from stop losses kept it a quiet afternoon session.  Euro closing around the 1.2650/55 level , GBP at 1.5665/70 ,  USD/CHF at94.95/99 .AUD at 1.0230/35 , USD/CAD at 1.0183/88 and last but not least USD/JPY at 79.90/95. Have a good weekend.