Previous session overview
U.S. Dollar Trading continued to test its strength against nearly all currencies as the new week offered little hope to investors.
On Monday, EURUSD was downwardly oriented in Asian trading and during the morning session in Europe. There were no important eco data on the calendar. EURUSD set an intraday low in the USD1.2555 area at the start of US trading. The EURUSD rebound ran into resistance later in the session as US stock drifted into the red again. The cross rate closed the session at USD1.2611, compared to USD1.2653 on Friday.
The British pound was easily the weakest of the majors, losing over 2 percent against the US dollar and 1.6 percent versus the Japanese yen, as concerns over the health of the UK's financial sector remain high.
On Monday, USDJPY was well bid in line with other dollar cross rates. Global market uncertainty at the start of the new trading week combined with rather poor Japanese eco data supported the USDJPY uptrend. USDJPY broke above the JPY98.30 area to JPY99.20, unsurprising after it posted its first current account deficit in 13 years.
The Australian dollar was slightly lower late Tuesday weighed down by another wave of negative sentiment in global equities markets those Wall Street indices to a new 12-year low. The Australian dollar was quoted at USD0.6389, down from USD0.6409 late Monday. It hit a low of USD0.6310 in late New York trading as the Dow Jones Industrial Average closed at the lowest since April 1997.
Market expectation
The euro is gaining against the dollar and yen as sentiment swings again toward a bit of risk-taking, with stock markets finding some footing.
Dealers report resistance to sales of euros because short-term charts seem to be turning positive. In addition, dealers are citing a building opinion that stock markets could enter a bear market rally soon.
In the market talking that Russian names reported on both sides as rate pushes above USD1.2700, the rate currently trading around USD1.2710. Offers seen placed between USD1.2720/30 ahead of USD1.2750/55.
USDJPY recovery from late Asian/early European lows around JPY98.35 has stretched back above JPY98.70, with traders now reporting interest to sell the rally at JPY98.80. Further offer noted into JPY99.15/20 with stops above. Downside stops reported under JPY98.25 and on a break of JPY97.90/80.
GBPUSD seen under pressure at writing, with rate challenging reported demand placed between USD1.3785/75. A break below this area allow for a retest on earlier lows at USD1.3761 ahead of Monday's lows at USD1.3741. Resistance seen placed at USD1.3830 ahead of USD1.3850/60.
In the coming weeks, the dollar would likely gain against the euro and other currencies on its safe-haven status, dealers said. It may particularly strengthen against the currencies of developing countries, which have been hard hit by a plunge in global demand for their exports, the engine of their growth, dealers said.
Most important events of the day
| 10-Mar | Count. | Event | For | Unit | Imp. | Act. | Cons. | Prev. |
| 0:01 | GB | BRC Retail Sales Monitor (Total) | Feb | % y/y | Med | 3.2 | ||
| 0:01 | GB | RICS Housing Survey | Feb | % y/y | Med | -75 | -76 | |
| 0:30 | AU | NAB Business Confidence | Feb | index | Med | -32 | ||
| 0:30 | AU | ANZ Jobs Ads | Feb | % m/m | Low | -6.3 | ||
| 5:00 | JP | Leading indicator (P) | Dec | index | High | 77.4 | 80 | |
| 7:00 | DE | Current Account (nsa) | Jan | EURbn | Med | 9.2 | 12.3 | |
| 7:00 | DE | Trade Balance | Jan | EURbn | Med | 9.5 | 6.9 | |
| 7:00 | DE | CPI (F) | Feb | % m/m | High | 0.6 | -0.5 | |
| 7:00 | DE | CPI (F) | Feb | % y/y | High | 1 | 0.9 | |
| 7:00 | DE | HICP (F) | Feb | % m/m | High | 0.7 | -0.6 | |
| 7:00 | DE | HICP (F) | Feb | % y/y | High | 1 | 0.9 | |
| 7:45 | FR | Trade Balance | Jan | EUR bn | Low | -3 | -2.5 | |
| 7:45 | FR | Industrial Production | Jan | % m/m | Low | -0.6 | -1.8 | |
| 7:45 | FR | Industrial Production | Jan | % y/y | Low | -11.9 | -11.1 | |
| 7:45 | FR | Manufacturing Production | Jan | % m/m | Low | -1.3 | -2.8 | |
| 7:45 | FR | Manufacturing Production | Jan | % y/y | Low | -15.6 | -14 | |
| 7:45 | FR | Central Government Balance | Jan | EUR bn | Low | -56.5 | ||
| 8:30 | EU | ECOFIN Meeting | Low | |||||
| 8:30 | DK | CPI | Feb | % m/m | Low | 0.7 | -0.3 | |
| 8:30 | DK | CPI | Feb | %y/y | Low | 1.3 | 1.8 | |
| 8:30 | DK | HICP | Feb | % m/m | Low | 0.6 | -0.4 | |
| 8:30 | DK | HICP | Feb | %y/y | Low | 1.2 | 1.7 | |
| 8:30 | SE | Activity Index | Jan | index | Low | 117.3 | ||
| 8:30 | SE | Industrial Orders | Jan | %m/m | Low | -8.7 | ||
| 8:30 | SE | Industrial Orders | Jan | %y/y | Low | -22 | ||
| 8:30 | SE | Industrial Production | Jan | %m/m | Low | -2 | -5.1 | |
| 8:30 | SE | Industrial Production | Jan | %y/y | Low | -19 | -20.3 | |
| 9:00 | IT | PPI | Jan | % y/y | Low | -0.4 | 0.6 | |
| 9:00 | IT | PPI | Jan | %m/m | Low | -0.5 | -1.3 | |
| 9:00 | NO | Core CPI | Feb | % y/y | Low | 2.5 | 2.8 | |
| 9:00 | NO | Core CPI | Feb | %m/m | Low | 0.6 | -0.5 | |
| 9:00 | NO | CPI | Feb | % y/y | Low | 2.1 | 2.2 | |
| 9:00 | NO | CPI | Feb | %m/m | Low | 0.3 | -0.3 | |
| 9:00 | NO | PPI inc. Oil | Feb | % y/y | Low | 3.9 | ||
| 9:00 | NO | PPI inc. Oil | Feb | %m/m | Low | 0.5 | ||
| 9:30 | GB | Industrial Production | Jan | % m/m | Med | -1.2 | -1.7 | |
| 9:30 | GB | Industrial Production | Jan | % y/y | Med | -9.9 | -9.4 | |
| 9:30 | GB | Manufacturing Production | Jan | % m/m | Low | -1.4 | -2.2 | |
| 9:30 | GB | Manufacturing Production | Jan | % y/y | Low | -11.7 | -10.2 | |
| 10:00 | EU | PPI | Jan | % y/y | Med | 0.5 | 1.8 | |
| 10:00 | EU | PPI | Jan | %m/m | Med | -0.2 | -1.3 | |
| 10:00 | EU | ECB Governing Council Member Weber to participate in the Annual conference of the Bundesbank, Frankfurt | Low | |||||
| 12:30 | US | Fed Chairman Bernanke to speak before the Council of Foreign Relations on "Reforming the U.S. Bank regulatory system" | Low | |||||
| 14:00 | US | Wholesale Inventories | Jan | %m/m | Low | -1 | -1.4 | |
| 14:00 | US | IBD consumer optimism | Mar | index | Low | 43 | 44.6 | |
| 17:05 | EU | ECB Governing Council Member Mersch to give remarks on the origins of the crisis before the American Chamber of Commerce, Luxembourg | Low | |||||
| 21:45 | NZ | Terms of Trade | Q4 | % q/q | Med | -3.7 | -1 | |
| 23:30 | AU | Westpac Consumer Confidence | Mar | index | Med | 85.8 | ||
| 23:50 | JP | Key Machinery Orders | Jan | % m/m | Low | -4.8 | -1.7 | |
| 23:50 | JP | Key Machinery Orders | Jan | % y/y | Low | -40 | -26.8 | |
| 23:50 | JP | Domestic CGPI | Feb | % y/y | Low | -1.2 | -0.2 |
