Previous session overview
On Monday, the dollar emerged higher versus the euro after volatile trading Monday on a flight to safety.
Traders sold the euro and other riskier assets on uncertainty over Washington's plans for U.S. banks, as well as cautious remarks from European Central Bank President Jean-Claude Trichet.
Trichet warned Monday that the euro zone's financial system is facing challenging times as financial markets and the real economy are dragged in a downward spiral. He said financing in the euro zone is dwindling.
The euro touched its 12-day high of USD1.2992 versus the dollar in European morning but was last trading down one percent at around USD1.2700.
The British pound pulled back against the greenback after testing USD1.4650 during European trading, but ultimately managed to end the day up slightly from Friday.
The Japanese Yen continued with its recent theme of weakness, shrugging off its safe haven status to fall to new multi-month lows just under JPY95. The crosses took advantage as well but extreme weakness in US stocks saw gains pared back.
The Australian dollar came under early pressure Tuesday after Wall Street posted its weakest close in over a decade Monday, but a comparatively resilient local share market and exporter demand allowed a late fight back.
Market expectation
The EUR is still headed lower as Eastern Europe remains a threat, the euro zone economy is still declining and European leaders appear as complacent as ever, according to analysts. With global risk appetite showing little sign of recovery, the single currency will remain under pressure.
EURUSD moves above resistance at USD1.2750, extending rally to USD1.2762, but reported stops through USD1.2760/70 so far said to remain intact. Further offers noted at USD1.2770/75.
EURGBP currently trades around stg0.8765 as cable begins to catch up on euro-dollar's fresh recovery rally. Bids remain in place at stg0.8730/20, more toward stg0.8700/690. Resistance seen placed at stg0.8785, stronger toward stg0.8800.
For GBPUSD resistance seen placed at USD1.4530, more toward USD1.4545/55 ahead of USD1.4580. Support remains at USD1.4480, stronger toward USD1.4450.
Most important events of the day
| 24-Feb | Count. | Event | For | Unit | Imp. | Act. | Cons. | Prev. |
| 0:00 | IS | Gallup Expectations Survey | Feb | Index | Low | 19.7 | ||
| 7:00 | FI | Unemployment | Jan | % rate | Low | 7.4 | 6.1 | |
| 7:00 | DE | Wholesale price index (24th-26th) | Jan | % m/m | Low | -2 | -3 | |
| 7:00 | DE | Wholesale price index (24th-26th) | Jan | % y/y | Low | -6.3 | -3.3 | |
| 7:45 | FR | Consumer spending | Jan | % m/m | Low | 0.3 | -0.9 | |
| 7:50 | FR | Consumer confidence | Feb | index | Low | -42 | -41 | |
| 8:15 | CH | Employment Level | Q4 | %y/y | Low | 2 | ||
| 8:15 | CH | Employment Level | Q4 | mn | Low | 3.96 | ||
| 8:30 | NL | Producer Confidence | Feb | index s.a | Low | -19.5 | -19.7 | |
| 8:30 | IT | ISAE Consumer Confidence | Feb | index | Low | 101.5 | 102.6 | |
| 9:00 | DE | IFO Business Climate | Feb | Index | High | 83 | 83 | |
| 9:00 | DE | IFO Current Conditions | Feb | Index | High | 84.9 | 86.8 | |
| 9:00 | DE | IFO Expectations | Feb | Index | High | 81.1 | 79.4 | |
| 9:00 | EU | Current account (nsa) | Dec | EUR bn | High | -13.9 | ||
| 9:00 | EU | Current account (sa) | Dec | EUR bn | High | -16 | ||
| 9:00 | CH | UBS Consumption Indicator | Jan | index | Med | 1.15 | ||
| 9:30 | GB | BBA Mortgage Approvals | Jan | K | Med | 22.1 | ||
| 9:30 | GB | Total Business Investment (P) | Q4 | % q/q | Med | -4.2 | -1.3 | |
| 9:30 | GB | Total Business Investment (P) | Q4 | % y/y | Med | -5.5 | -0.1 | |
| 9:40 | GB | BoE MPC member Sentance will give a speech at The Institute of Economic Affairs' 26th Conference, London | Low | |||||
| 10:00 | EU | EU Ind. new orders (wda) | Dec | % y/y | Low | -21.7 | -26.2 | |
| 10:00 | EU | EU Ind. new orders (sa) | Dec | %m/m | Low | -4.9 | -4.5 | |
| 11:00 | GB | CBI Quarterly Distributive Trades | Feb | Index | Low | -52 | -47 | |
| 14:00 | BE | BNB Business Confidence | Feb | Index | Med | -27.7 | ||
| 14:00 | US | S&P Case-Shiller Home Price | Dec | % y/y | Low | |||
| 14:00 | US | S&P Case-Shiller Home Price Ind | Dec | % y/y | Low | -18.3 | -18.18 | |
| 15:00 | US | Consumer confidence | Feb | index | High | 35 | 37.7 | |
| 15:00 | US | OFHEO House Price Index | Dec | % m/m | Low | -1.6 | -1.8 | |
| 15:00 | US | Fed Chairman Bernanke to testify before the Senate Banking Committee on Monetary Policy | Low | |||||
| 16:30 | US | Dallas Fed President Fisher speaks at the Fourth Archway Investment Fund Financial Services forum on "The current financial crisis" | Low | |||||
| 22:30 | NZ | FinMin English will appear at the parliament's Finance and Expenditure select committee to discuss the annual financial statements, Wellington | Low | |||||
| 23:50 | JP | Customs Cleared Trade | Jan | Y bn | Low | -1200 | -320.7 |
