Market Roundup
- EU'S Tusk says EU, U.S. are united in determination to maintain sanctions on Russia
- FED's Mester says tolerant of the idea the economy will take longer to generate inflation given the depth of the crisis and recession
- Fed's Mester still sees rate liftoff appropriate in H1 '15, is reasonably confident inflation will increase and expectations will remain well anchored, housing stll in a slow slog not likely to contribute to growth this year
- ECB's Weidmann says I am skeptical about need for more expansive mon policy now, sovereign bond-buying plan could lead to countries delaying necessary budget consolidation
- Eurogroup's Dijsselbloem says EZ ready to support Greece financially if Greece implements bailout reforms, no rollback of reforms in Greece has to be respected at all times
- EU official says Greece to open technical reform talks w/EU, ECB & IMF experts in Brussels on Wednesday
- Greece to start discussion w/EU partners to find solution to Greek liquidity issues (Greek defense minister)
- Bk of Italy, ECB to buy EUR 150b
- US Treasury's Sheets Washington still not satisfied w/China's CCY policies
- Mexico FX commission closely watching the peso has more tools to deal with any further peso slump (FinMin Videgaray)
- Brazil CB poll '15 inflation f/c 7.77 v 7.47% pvs wk, '15 GDP growth f/c -0.66 v -0.58%
- US Emp Trends Mar 127.76, 127.62-prev
- CA House Starts, Ann Feb 156.3k, f/c 180.0k, 187k-prev
- MX Headline Inflation Feb 0.19%, f/c 0.21%, -0.09%-prev
- MX Core Inflation Feb 0.34%, f/c 0.37%, -0.03%-prev
- MX 12-Month Inflation Feb 3%, f/c 3.02%, 3.07%-prev
- Reuters Poll 16/21 traders said ECB will bring inflation to target
- Allianz's El-Arian says 2015 Fed rate hike obvious (CNBC)
Economic Data Ahead
- (1700 ET/ 2100 GMT) NewZealand Govt Optg Balance Jan (previous 27.8%)
- (1700 ET/ 2100 GMT) NewZealand Govt. Monthly Debt Jan (previous 28.1%)
- (1700 ET/ 2100 GMT) NewZealand REINZ HPI MM Feb (previous -1%)
- (1700 ET/ 2100 GMT) NewZealand REINZ HPI Year Ago Feb (previous 7.5%)
- (1745 ET/ 2145 GMT) NewZealand Elec Card Retail Sales mth Feb (previous -0.4%)
- (1745 ET/ 2145 GMT) NewZealand Elec Card Retail Sales YY (previous Feb 4%)
- China M2 Money Supply YY Feb (consensus 11%, previous 10.8%)
- China New Yuan Loans Feb (consensus 750.0b, previous 1470.0b)
- China Outstanding Loan Growth Feb (consensus 13.8%, previous 13.9%)
- (2030 ET/ 0030 GMT) Australia NAB Business Conditions Feb (previous 2)
- (2030 ET/ 0030 GMT) Australia NAB Business Conf Feb (previous 3)
- (2130 ET/ 0130 GMT) China PPI YY Feb (consensus -4.3%, previous -4.3%)
- (2130 ET/ 0130 GMT) China CPI YY Feb (consensus 0.9%, previous 0.8%)
- (2130 ET/ 0130 GMT) China CPI MM Feb (consensus 0.8%, previous 0.3%)
- (1805 ET/ 2205 GMT) Australia RBA Assistant Governor Christopher Kent speaks at the National RSL Clubs Conf
FX Recap
USD/JPY: USD/JPYpierced above the 121 mark to climb as high as 121.40 its highest level in 3 months . The pair continued to move higher amid a renewed USD buying interest. At time of writing, the pair is trading at 121.30, recording a 0.51% gain on the day. The pair could find immediate resistances at 121.40 (daily high), 121.83 (7-year high, Dec 8 2014) and 122.00 (psychological level). While supports are seen at 120.60 (daily low), 120.00 (psychological level) and 119.84 (10-day SMA).
USD/CAD: USD/CAD is lacking conviction and remains in a sideways channel. The pair trades between the 40 DMA around 1.2400 and 1.2800 on the four hour chart. USD/CAD is currently trading at 1.2595 with a high of 1.2628 and a low of 1.2571. Above 1.2650 clears way for 1.2800. The only CAD data of significance begins on Thursday with New Housing Prices and ends with Unemployment on Friday.
EUR/USD: Euro is expected to remain under pressure as the ECB started its quantitative easing program on Monday. EUR/USD trades in a tight range on Monday, hovering over 1.0850/55 following the Eurogroup meeting. The pair failed to sustain intraday gains and pulled back to the 1.0840 zone at the beginning of the American session and is currently trading at 1.0859. Immediate supports located at 1.0805 and 1.0760, while resistances seen at 1.0890, 1.0925 and 1.0960.
EUR/GBP: EUR/GBP is still trading with a heavily bearish tone on both the short term and medium term charts. Recent sell off has bought in the 0.7187 October 1998 high which may provoke a small rebound. A breach of the latter will trigger another leg lower to 0.7020/00. EUR/GBP is currently trading at 0.7176 with a high of 0.7219 and a low of 0.7175.
NZD/USD: NZD/USD pair erased gains and is consolidating above 0.7350. The kiwi is trading flat against the USD after losing more than 200 pips during the previous two trading days. RBNZ is due later in the week and is expected to keep rates unchanged. The statement is likely to impact the kiwi, with traders looking for a policy bias. NZD/USD could find resistance at 0.7445/50 , 0.7570 and 0.7615. While supports lie at 0.7310, 0.7215 and 0.7175 (2015 low).
