The risk aversion witnessed overnight carried on into the NY session, with US equities plunging -3.5% and the S&P closing below the key 50-day moving average. Oil suffered a -7.5% slip and was sitting just above $48.50/bbl after the drop through $50/bbl saw selling pressure emerge. Gold was higher initially but ended the session near the 914/915 open.

Economic data was scarce and second tier, but the market had something to chew on with the new auto bailout plan being hashed out. In a nutshell, the Obama administration is now giving the two most troubled automakers a deadline and some preconditions that must be met before they can get any more taxpayer funding. Financials sank more than -9% on the hangover from the ''banks will need more'' comments from Geithner over the weekend.

EUR/USD had a very choppy session, trading in a 1.3120/1.3210 range and closing right around the top of that range. The yen crosses recovered some of the lost ground from overnight. USD/JPY added 40 pips towards 97.20/30 while EUR/JPY jumped 60 pips to the 128.30/40 zone. We still look for more JPY weakness to emerge once the fiscal yearend flows (which tend to be JPY positive) dissipate tomorrow. Japanese employment data due up in the upcoming Asia session should keep the yen under pressure as well – in other words the JPY crosses supported.

GBP/USD popped a healthy 70 points and was sitting near 1.4260/70 at the NY close. The 200hr lurks just above 1.43 and looks to be the first stop on any move higher overnight. GfK consumer confidence for the UK is due and a weaker result here could halt any rally in Cable, however. USD/CAD was one of the bigger movers and the pair popped more than 120 pips to 1.2620/30 as oil was decimated.

Upcoming Economic Data Releases (Asia Session) prior  expected

  • 3/30 23:01 GMT UK  GfK Consumer Confidence Survey  MAR  -35  -35
  • 3/30 23:15 GMT JN  Nomura/JMMA Manufacturing PMI  MAR  31.6  - -
  • 3/30 23:30 GMT JN  Jobless Rate  FEB  4.10%  4.30%
  • 3/30 23:30 GMT JN  Job-To-Applicant Ratio  FEB  0.67  0.63
  • 3/30 23:30 GMT JN  Household Spending (YoY)  FEB  -5.90%  -4.70%
  • 3/31 0:30 GMT AU  Private Sector Credit MoM%  FEB  0.60%  0.50%
  • 3/31 0:30 GMT AU  Private Sector Credit YoY%  FEB  0.00%  5.80%
  • 3/31 1:30 GMT JN  Labor Cash Earnings YoY  FEB  -1.30%  -1.50%
  • 3/31 2:00 GMT NZ  NBNZ Business Confidence  MAR  -41.2  - -
  • 3/31 2:00 GMT NZ  National Bank Business Confidence Report  31-Mar  
  • 3/31 5:00 GMT JN  Housing Starts (YoY)  FEB  -18.70%  -17.60%
  • 3/31 5:00 GMT JN  Annualized Housing Starts  FEB  0.957M  0.950M
  • 3/31 5:00 GMT JN  Construction Orders (YoY)  FEB  -38.30%  - - 
  • 3/31  5:00 GMT JN  Small Business Confidence  MAR  25  - -