The NY session was confounding to say the least as equities posted their biggest rally since late November but the USD failed to lose much ground. The S&P snapped back above the 700 pivot and closed up +6.4% in the session. Gold came off some more and was sitting a sharp -$26 lower just under the 900 level. The 890 trendline support held for now, but a move below there would open up potential to 875/870 next. US Treasuries sold off as well and the 10-year yield jumped about 14bps to just shy of the 3.0% level.
The buck held its own despite the overall flight to risky assets. EUR/USD shed about -25 pips in the session and was sitting near 1.2680 as the NY close approached. Profit taking ostensibly emerged on the move above 1.28 and the pair never looked back once it broke back below there in earnest. The yen crosses were mixed as result. EUR/JPY slipped a modest -10 pips into 125 while USD/JPY added about 10 points into the 98.50/60 area. In other words, the correlation between higher stocks and higher EUR and JPY crosses broke down discernibly today.
Upcoming Economic Data Releases (Asia Session) prev est
- 3/10/2009 21:45 GMT NZ Terms of Trade Index (QoQ) 4Q -2.30% -3.70%
- 3/10/2009 23:30 GMT AU Westpac Consumer Confidence MAR -4.60% --
- 3/10/2009 23:50 GMT JN Machine Orders (MoM) JAN -1.70% -5.00%
- 3/10/2009 23:50 GMT JN Machine Orders YOY% JAN -26.80% -40.20%
- 3/10/2009 23:50 GMT JN Domestic CGPI (MoM) FEB -1.00% -0.60%
- 3/10/2009 23:50 GMT JN Domestic CGPI (YoY) FEB -0.20% -1.20%
- 3/11/2009 0:01 GMT UK NIESR GDP Estimate FEB -1.70% - -
- 3/11/2009 0:30 GMT AU Home Loans JAN 6.40% 4.00%
- 3/11/2009 0:30 GMT AU Investment Lending JAN 2.90% 3.50%
- 3/11/2009 0:30 GMT AU Value of Loans MoM JAN 7.10% 4.00%
