The price action was mixed in NY trading as the flows around tomorrow's month end continue to be volatile. US stocks shed another -1.5% in broad terms as details of Obama's massive budget  and $1 trillion in proposed tax hikes led shares lower. The 7-year Treasury bond auction, the first since the early 1990s, was described as sloppy though the bid/cover of 2.1 suggests demand for US paper remains robust. Bonds were lower as demand for higher yields drove prices down. The 10-year rate added 7bps to near 3.00% while the 2-year was pretty flat at 1.08%. Gold lost another -$7 towards 946 as profit taking continued. The precious metal briefly tested 935/930 support and this is expected to be an interesting level as we head into the weekend.       
       
EUR/USD edged about -50 pips in NY trading as failure to take out the 1.28 barrier put downside pressure on the pair. The 200hr SMA by 1.2710 and hourly trendline by 1.2670 now look like the next barriers to further weakness. USD/JPY was bid more than 30 pips despite the weakness in stocks as the yen safe haven myth continues to evaporate. The pair was sitting near the 98.50 pivot at the NY close and 99 looks like the next hurdle in the rally. USD/CAD surprisingly jumped about 95 pips to 1.2530/40 despite the pop in oil prices to near the $45/bbl level. Look for this correlation to resume once the murkiness around month-end subsides next week.       
       
Upcoming Economic Data Releases (Asia Session)  prev  est       

  • 26-Feb 23:15 GMT JN Nomura/JMMA Manufacturing PMI FEB 29.6 - -
  • 26-Feb 23:30 GMT JN Jobless Rate JAN 4.40% 4.60%
  • 26-Feb 23:30 GMT JN Job-To-Applicant Ratio JAN 0.72 0.69
  • 26-Feb 23:30 GMT JN Household Spending (YoY) JAN -4.60% -5.50%
  • 26-Feb 23:30 GMT JN Natl CPI YoY JAN 0.40% 0.00%
  • 26-Feb 23:30 GMT JN Natl CPI Ex-Fresh Food YoY JAN 0.20% -0.10%
  • 26-Feb 23:30 GMT JN Natl CPI Ex Food, Energy YoY JAN 0.00% -0.20%
  • 26-Feb 23:50 GMT JN Industrial Production (MoM) JAN P -9.80% -10.00%
  • 26-Feb 23:50 GMT JN Industrial Production (YoY) JAN P -20.80% -30.70%
  • 26-Feb 23:50 GMT JN Large Retailers' Sales JAN -6.30% -5.70%
  • 26-Feb 23:50 GMT JN Retail Trade YoY JAN -2.70% -3.00%
  • 26-Feb 23:50 GMT JN Retail Trade MoM SA JAN -2.00% -0.50%
  • 27-Feb 0:01 GMT UK GfK Consumer Confidence Survey FEB -37 -39
  • 27-Feb 0:30 GMT AU Private Sector Credit MoM% JAN -0.30% 0.30%
  • 27-Feb 0:30 GMT AU Private Sector Credit YoY% JAN - - 6.00%
  • 27-Feb 0:30 GMT AU RBA Foreign Exchange Transactn JAN - - - -
  • 27-Feb 4:00 GMT JN Vehicle Production (YoY) JAN -25.20% - -
  • 27-Feb 5:00 GMT JN Housing Starts (YoY) JAN -5.80% -14.90%
  • 27-Feb 5:00 GMT JN Annualized Housing Starts JAN 1.001M 0.997M
  • 27-Feb 5:00 GMT JN Construction Orders (YoY) JAN -27.30% - -