Currency Updates:
U.S. Dollar Trading (USD) the USD was able to make small gains as the Euro and GBP came under pressure. February New Home Sales plummeted keeping in line with other weak Housing data. Stocks were able to make small gains as investors still remain bullish. In US stocks, DJIA +63 points closing at 12086, S& P +3 points closing at 1296 and NASDAQ +14 points closing at 2698. Looking ahead, Weekly Jobless Claims are forecast at 383k vs. 385k previously.
The Euro (EUR) found selling pressure as the market watched Portugal Debt yields spike higher on concerns that austerity measures would be delayed after a vote in parliament failed. The PM resigned and could prompt a snap election. Overall the EUR/USD traded with a low of 1.4076 and a high of 1.4216 before closing the day around 1.4080 in the New York session. Looking ahead, March PMI forecast at 58.4 vs. 58.6 previously.
The Japanese Yen (JPY) USD/JPY kept very quiet for another day with the market moving more on the crosses. The EUR/JPY fell after the Portugal news but the AUD/JPY remained strong and edged higher with stocks. Overall the USD/JPY traded with a low of 80.69 and a high of 81.09 before closing the day around 80.90 in the New York session. UPDATE February Trade Balance at 654bn vs. 894bn previously.
The Sterling (GBP) the UK budget was bearish with downgrades to the economic outlook hurting the GBP/USD. EUR/GBP was able to fall though with the Euro outpacing to the downside and many players are happy to buy cable on weakness. Overall the GBP/USD traded with a low of 1.6217 and a high of 1.6388 before closing the day at 1.6250 in the New York session. Looking ahead, February Retail Sales are forecast at -0.6% vs. 1.6% previously.
The Australian Dollar (AUD) ignored the EUR/USD weakness to track the US stock markets higher and outperform the rest of the market. AUD/NZD is staying close to the 1.3700 level but finding lots of selling pressure above the figure. Overall the AUD/USD traded with a low of 1.0063 and a high of 1.0158 before closing the day at 1.0130 in the New York session.
Oil & Gold (XAU) pushed higher as the EU debt situation flared up and demand for the alternative investment soared. Overall trading with a low of USD$1425 and high of USD $1441 before ending the New York session at USD$1438 an ounce. Edged higher with the market still concerned with middle east supply disruptions. WTI Oil Closed +$0.51 at $105.58 a barrel.
