Risk appetites made the best out of a bad environment and posted solid gains in US stocks, which resulted in further USD selling as it loses its safe haven demand. US housing starts and building permits unexpectedly rose, and though there were some holes in the data, traders seemed to like the idea that housing may be stabilizing. Stocks gradually began to shuffle higher and by the last hour of trading they were surging into the close. The USD mostly traded softer on better performing shares, but stayed with ranges established yesterday. Trading seemed constrained ahead of the FOMC decision on Wednesday and possibly due to St. Patrick's Day festivities.
US stocks closed above some key technical resistance levels that suggest further gains may be in store, while the US dollar index closed below important technical support levels, perhaps signaling further weakness ahead. USD/JPY was the exception, holding relatively firm on persistent institutional demand. Gold weakened further for a second day in a row as safe have demand for the yellow metal similarly waned.
Upcoming data releases
- 3/17/2009 23:30 AU Westpac Leading Index (MoM) JAN -0.40% - -
- 3/18/2009 JN BOJ Target Rate 18-Mar 0.10% 0.10%
- 3/18/2009 5:00 JN BOJ Monthly Report 17-Mar
- 3/18/2009 5:00 JN Leading Index CI JAN F 77.1 - -
- 3/18/2009 5:00 JN Coincident Index CI JAN F 89.6 - -
