The lack of any earth shattering economic events had the FX market practically in sync with the goings on in the equity space. US stocks had another rollercoaster of a day, rallying a hard +1.8% early on only to see gains evaporate into a -1.0% day. EUR/USD followed stocks closely all session and soared to a 1.2660 session high as stocks pushed upwards. The pair eventually pared gains and was sitting about 25 pips higher in NY trading by 1.2600/05 as the close approached. Hourly trendline support lurks by 1.2570 and below should open up potential to 1.2510/00 next.
The yen crosses swung around as well on the back of equity market volatility. USD/JPY was about -20 pips lower in the session towards 98.70/80 while EUR/JPY was practically unchanged near 124.40/50 after moving roughly 130 pips from low to high. GBP/USD sank another -75 pips to 1.3780 as the downward pressure remained intense. Look for support by 1.3750/40 initially and keep in mind the potential for a nasty reversal higher overnight.
USD/CAD managed to eke out a 50 pip rally and was sitting near the 1.30 mark despite oil climbing to a two month high on news that OPEC plans to limit production further. The pair tried briefly above 1.3050 in early NY trading but the euphoria faded as oil pushed into fresh intraday highs near $49/bbl. A close above 1.2950 leaves the overall bias higher short-term.
Upcoming Economic Data Releases (Asia Session) prev est
- 3/10/2009 0:01 GMT UK BRC February Retail Sales Monitor 10-Mar
- 3/10/2009 0:01 GMT UK RICS House Price Balance FEB -76% -75%
- 3/10/2009 0:30 GMT AU NAB Business Confidence FEB -32 - -
- 3/10/2009 0:30 GMT AU NAB Business Conditions FEB -11 - -
- 3/10/2009 0:30 GMT AU ANZ Job Advertisements (MoM) FEB -6.30% - -
- 3/10/2009 5:00 GMT JN Leading Index CI JAN P 80 77.4
- 3/10/2009 5:00 GMT JN Coincident Index CI JAN P 92.4 89.8
- 3/10/2009 6:00 GMT JN Machine Tool Orders (YoY) FEB P -84.10% - -
