Market Roundup
- US Redbook MM w/e 1%, 0.8%-prev
- US Redbook YY w/e 2.6%, 2.6%-prev
- US NFIB Business Optimism Idx Feb 98, 97.9-prev
- US JOLTS Job Openings Jan +4.998m, f/c 5.053m, +4.877m
- US Wholesale Inventories MM Jan 0.3%, f/c 0%, 0%-prev
- US Wholesale Sales MM Jan -3.1%, f/c -0.3%, -0.9%-prev
- ECB's Coeure expects banks to shift portfolios to riskier investment due to QE, providing further stimulus, no issues in respect of sourcing bonds for ECB to buy, to avoid shortage of assets used as collateral bonds bought under QE will be made available to mkt via securities lending
- Canada's Oliver says there is no housing bubble continues to monitor mkt closely
- Greece is set to tap into more than half a billion euro's of funds sitting in the country's bank rescue fund
- Germany's Schaeuble no aid would be handed to Greece until international lenders had agreed that it had delivered on its reform commitments.
- The balance sheet of the ECB & the EZ's national CBs shrank by EUR 21b in the week to Mar. 6
- BOE's Carney says global risks are considerable, inadequacy of capital has held back lending rather than new rules, would be ext6remelt foolish to provide extra stimulus at this time to boost inflation
- BOE's McCafferty says slack in economy likely less than MPC's consensus view of 0.5% of GDP
- White House CEA Chmn Furman said the surging USD is a headwind for U.S. growth, (BBG)
- Brazil's Rousseff Brazil is not experiencing a crisis like those the country weathered in the past, fiscal austerity push is not going to paralyze the country
- Brazil's Treasury chief Saintive says no risk of Brazil losing investment grade rating
- Eurogroup's Dijsselbloem Greece must immediately begin making steps toward complying with the terms of its loan agreements or financial markets will again begin to lose confidence in the country.
- (1930 ET/ 2330 GMT) Australia Consumer Sentiment (previous Mar 8%)
- (2030 ET/ 0030 GMT) Australia Housing Finance Jan (consensus -2%, previous 2.7%)
- (2030 ET/ 0030 GMT) Australia Invest Housing Finance Jan (consensus 6%)
- (1950 ET/ 2350 GMT) Japan Corp Goods Price MM Feb (consensus 0%, previous -1.3%)
- (1950 ET/ 2350 GMT) Japan Corp Goods Price YY Feb (consensus 0.5%, previous 0.3%)
- (1950 ET/ 2350 GMT) Japan Machinery Orders MM Jan (consensus -4.1%, previous 8.3%)
- (1950 ET/ 2350 GMT) Japan Machinery Orders YY Jan (consensus -1%, previous 11.4%)
- (0130 ET/ 0530 GMT) China Urban investment (ytd)yy Feb (consensus 15%, previous 15.7%)
- (0130 ET/ 0530 GMT) China Industrial Output YY Feb (consensus 7.8%, previous 7.9%)
- (0130 ET/ 0530 GMT) China Retail Sales YY Feb (consensus 11.7%, previous 11.9%)
- No Significant Events
FX Recap
USD/JPY: The Japanese currency is among the best performers across the board as stocks decline sharply in Wall Street. USD/JPY bottomed earlier at 120.89, reaching a 2-day low. Recovery from the lows found resistance at 121.35 and the pair moved back toward 121.00. Currently trades at 121.03, down 0.10% for the day. Option expiries for Wednesday March 11th: 119.60-65 (1.4B), 120.00 (1.3B), 120.50 (908M), 121.00 (565M), 121.50 (330M), 122.00 (960M)
USD/CAD: Canadian dollar on Tuesday fell to its weakest level in nearly a month against the soaring U.S. currency, as confusion about BoC's stance contrasted with growing confidence that the U.S. Federal Reserve will start lifting rates by mid-year. USD/CAD then recovered nicely when supply came in heavy at 1.2660. USD/CAD is currently trading at 1.2671 with a high of 1.2684 and low of 1.2596. Option expiries for Wednesday March 11th: 1.2600 (390M), 1.2750 (240M)
EUR/USD: Greek debt concerns and ECB bond-buying program are keeping the euro under pressure. EUR/USD briefly fell below the 1.0700 level for first time in 12 years. At time of writing, the pair is trading at 1.0710, recording a 1.29% loss on the day. Currently the pair is trading at 1.0710, down 1.29% on the day. EUR/USD has fallen 8 out of the last 9 days, making fresh lows on a daily basis. The euro has fallen to multi-year lows against the pound and the yen as well. Option expiries for Wednesday March 11th: 1.0725 (3.2BLN), 1.0755 (458M), 1.0900 (960M)
USD/CHF: USD/CHF hit highest level since SNB meltdown, but faltered a couple of pips ahead of the parity level. The pair posted its highest level in 2 months at 0.9998 but failed to regain the 1.00 mark and pulled back which was contained by the 0.9955 zone. Currently USD/CHF is trading at 0.9988. Resistances remain at 1.0000 (psychological level) and 1.0070 (100-month SMA). Supports could be found at 0.9852 (daily low) and 0.9824 (Mar 9 low).
GBP/USD: The pound erased part of Monday's gains and fell to 1.5027, the lowest price since February 3 during the European session. The pair found support at 1.5030, and has rebounded back, trimming losses but is still below the 1.5100 mark, failing to break higher. Currently the pair trades at 1.5085, down 40 pips from yesterday's closing price. Next resistance is at 1.5135/40 (March 9 high) while immediate support lies at 1.5025/30 (March 9, 10 lows) and 1.5000.
