Wednesday, March 23, 2011

Euro Declines ahead of Portugal Vote

The euro declined ahead of the Portugal austerity vote which has been
delayed and as decisions regarding EFSF measures were reportedly
pushed back as well. EUR/USD fell from above 1.4200 to around 1.4100
and currently trades around 1.4125. U.S. housing data disappointed
with February new home sales falling to 250K from the prior month's
301K (cons. 290K) for a MoM change of -16.90%. The 250K print was the
lowest on record and highlights the Fed's view that the housing market
"continues to be depressed".

U.S. equities gained after a bumpy start to the day with the Dow Jones
Industrial Average climbing by around +0.56% while the S&P 500
advanced nearly +0.29% on the day. Commodities were firmer with silver
outperforming with a rise of around +2.72% while gold and oil edged
higher by around +0.82% and +0.70% respectively. Oil gained despite
higher than expected crude oil inventories which were released today
at 2.1 million barrels (exp. 1.5 million). U.S. Treasury yields were
slightly higher at about 3.34%.

On the data front for the upcoming Asia/Pacific session is New Zealand
4Q GDP, the January Conference Board leading indicator out of
Australia, Japan February trade balance figures, and China's HSBC
flash manufacturing for March.

Source: ActionForex.Com

No comments: