Risk was pared back in London trading after pretty euphoric overnight trading on the back of the RBA surprising markets and deciding not move on rates. European bourses are mixed and down a modest -0.1% on average. Equities in the US are trading a touch higher in the futures pit as yesterday's close at 1996 lows brings some of the bargain hunters out of the woodwork. FX traded accordingly in a risk averse manner in the session.

EUR/USD retraced some of the overnight gains and dipped -50 pips to just above 1.2600 support. Look for support into 1.2550/40 if below there, with good option related interest on a move to 1.2500.
EUR/JPY slipped about -40 pips towards 123.40 while USD/JPY was modestly higher and trading around 98 resistance as NY trading gets underway.

Data out of the UK continued to print very weak with PMI construction for February coming in at 27.8 versus an expected 34.2 and 34.5 the previous month. GBP/USD was about -90 points lower as a result and near 1.4020/30 at last look. Ostensibly there is some buying interest on dips into 1.4000 in the short term here.

The NY session is light on data but heavy on policy speakers. The big one early on will be the Bank of Canada rate decision where they are expected to cut by -50bps to 0.50%. Look for the statement to paint a poor picture of the Canadian economy as it continues to catch up to US weakness. In the NY afternoon we have the Fed's Lockhart, Fed Chairman Bernanke, ECB President Trichet and Treasury Secretary Geithner all on tap. Stay tuned!

Upcoming Economic Data Releases (NY Session) prev est

  • 3/3 13:00 GMT US Fed's Lockhart Speaks on U.S. Economy

  • 3/3 14:00 GMT CA Bank of Canada Rate 3-Mar 1.00% 0.50%

  • 3/3 14:00 GMT CA Bank of Nova Scotia Hosts Shareholders Meeting in Halifax 3-Mar

  • 3/3 15:00 GMT US Pending Home Sales MoM JAN 6.30% -3.00%

  • 3/3 15:00 GMT US Bernanke Testifies Before Senate Budget Committee 3-Mar

  • 3/3 17:30 GMT EC ECB's Trichet Speaks at Event in Frankfurt 3-Mar

  • 3/3 17:30 GMT US Geithner Testifies to House Panel on Federal Budget

  • 3/3 21:15 GMT NZ Central Bank Governor Bollard at Select Committee 3-Mar

  • 3/3 22:00 GMT US ABC Consumer Confidence 1-Mar -48 -47

  • 3/3 US Total Vehicle Sales FEB 9.6M 9.6M

  • 3/3 US Domestic Vehicle Sales FEB 6.9M 6.8M