Risk trades came off some more in London trading as the world's largest maker of luxury cars reported disappointing earnings results.
European bourses are down about -1.8% on average and US futures are following with a more modest -0.5% decline thus far. US Treasuries remain bid this morning with the 10-year shedding another -3bps into 2.88% and Gold has staged another modest +$7 rally towards the 916/917 zone.

Eurozone data continued to look horrid with German industrial production plunging -7.5% in January to a new record low -19.3% annual run rate. EUR/USD traded pretty much sideways and was sitting just about 10 pips higher in the London session near the 1.2775/80 area. The yen crosses saw little action as well with USD/JPY down about -15 pips towards 96.30/40 while EUR/JPY was lower by a similar amount near the 123 zone.

Cable was punished once again and the pair continues to find it difficult to get up off the ground. GBP/USD sank about -60 points and was sitting near 1.3770/80 ahead of the NY open.
Ostensibly Eastern European names were sellers overnight. The path of least resistance seems to sell on rallies rather than buy on dips here.

US economic data finally heats up after a very light week. Retail sales and initial jobless claims are the highlights and both are up at 830am ET. The market is looking for retail sales to dip -0.5% for February after posting a surprising +1.0% increase the prior month. Initial jobless claims, meanwhile, are expected to remain elevated at 644K from 639K last week. Worse than expected results from both reports should see risk trades come off some more and potentially exacerbate the decline in stocks – should be USD positive.

Upcoming Economic Data Releases (NY Session) prev est

  • 3/12/2009 12:30 GMT US Advance Retail Sales FEB 1.00% -0.50%

  • 3/12/2009 12:30 GMT US Retail Sales Less Autos FEB 0.90% -0.10%

  • 3/12/2009 12:30 GMT US Initial Jobless Claims 7-Mar 639K 644K

  • 3/12/2009 12:30 GMT US Continuing Claims 28-Feb 5106K 5140K

  • 3/12/2009 14:00 GMT US Business Inventories JAN -1.30% -1.00%

  • 3/12/2009 16:45 GMT CA BOC's Deputy Governor Longworth speaks

  • 3/12/2009 18:30 GMT UK BOE's Barker to Make Speech

  • 3/12/2009 21:45 GMT NZ Retail Sales (MoM) JAN -1.00% -0.10%

  • 3/12/2009 21:45 GMT NZ Retail Sales Ex-Auto (MoM) JAN -0.60% 0.20%