Market Roundup
- US Personal Consump Real MM Jan 0.3%, -0.10%-prev
- US Personal Income MM Jan 0.3%, f/c 0.4%, 0.30%-prev
- US Consumption, Adjusted MM Jan -0.2%, f/c -0.1%, -0.30%-prev
- US Core PCE Price Index MM Jan 0.1%, f/c 0.1%, 0.00%-prev
- US Core PCE Price Index YY Jan 1.3%, 1.30%-prev
- US PCE Price Index MM Jan -0.5%, -0.20%-prev
- US PCE Price Index YY Jan 0.2%, 0.01-prev
- US Markit Mfg PMI Final Feb 55.1, 54.30-prev
- US Construction Spending MM Jan -1.1%, f/c 0.3%, 0.01-prev
- US ISM Manufacturing PMI Feb 52.9, f/c 53, 53.50-prev
- US ISM Mfg Prices Paid Feb 35, f/c 37.0, 35-prev
- US ISM Manuf Employment Idx Feb 51.4, f/c 54.0, 54.1-prev
- US ISM Manuf New Orders Idx Feb 52.5, 52.9-prev
- US Dallas Fed PCE Jan 0.70%-prev
- US Redbook MM w/e 0.80%-prev
- CA Current Account C$ Q4 -13.92b, f/c -12.50b, -9.60b-prev
- CA RBC Mfg PMI SA Feb 48.7, 51-prev
- BR HSBC Manufacturing PMI Mar 49.6, 50.7-prev
- BR Trade Balance Feb -2.842f/c -2.20b, -3.17b-prev
- MX HSBC Manufacturing PMI Feb 54.4, 56.6-prev
- EU's Juncker investment plan doesn't preclude need for budget consolidation
- Germany's Merkel says Greece must be more specific about its reform plans, there is need for stronger econ policy coordination among EZ members
- France's Macron France to cut spending by 50 billion euros by 2017, but no more
- Moody's changes outlook on Ireland's banking system to stable from negative
- Spain's De Guindos says euro zone in talks over 3rd Greek bailout
- Euro zone not discussing 3rd Greek bailout (Eurogroup head's spokeswoman)
- EC President Juncker says no talks in the euro zone for a 3rd Greek bailout
- Greece has alternative ways to cover March funding needs (FinMin official)
- Brazil's Monteiro says U.S. relationship is the priority for trade
- Berkshire's Buffet compared to rest of world US doing very well
- Patrick T. Harker, current president of the Univ of Delaware and member of the Philadelphia Fed's board of directors will replace Philly Fed President Charles Plosser
Economic Data Ahead
- (1930 ET/ 0030 GMT) Australia Building Approvals Jan (consensus -1.8%, previous -3.30%)
- (1930 ET/ 0030 GMT) Australia Private House Approvals Jan (previous0.00%)
- (1930 ET/ 0030 GMT) Australia Current Account Deficit Q4 (consensus 11.00b, previous 12.50b)
- (1930 ET/ 0030 GMT) Australia Net Exports Contribution Q4 (consensus 0.6%, previous 0.80%)
Key Events Ahead
- (2230 ET/ 0330 GMT) Australia RBA Cash Rate Mar (consensus 2%, previous 2.25%)
FX Recap
EUR/USD: The euro which has been in an extended slump, had been up by as much as a third of a percent against the dollar but surrendered gains and traded near unchanged at just under $1.12. The euro was bolstered by stronger purchasing manager surveys out of Germany and Italy as well as a slightly smaller fall in the first estimate of February inflation. EUR/USD correcting lower from session peaks around 1.1240. Immediate support is at 1.1100 ahead of 1.1098 with resistance at 1.1245 and finally 1.1345. Option expiries: 1.1180 (600M), 1.1200 (320M), 1.1290 (250M), 1.1350 (350M)
USD/JPY: USD/JPY clears 120 barriers, despite soft ISM data. USD gathered traction reverting the initial selling tone lifting USD/JPY to 3-week highs beyond the 120.00 handle. Pair is gaining 0.34% at 120.05 with the next hurdle at 120.48 followed by 120.68 and finally 120.74. On the flip side supports are seen at 119.63, 119.13 and then 119.11. Next in focus is Yellen's speech, followed by the ADP report, ISM Non-manufacturing and the Fed's Beige Book, all due on Wednesday. Option expiries: 119.00 (330M), 119.75 (250M), 121.00 (430M)
USD/CAD: USD/CAD is on the bid despite some disappointing US data. The pair is currently trading at 1.2541 with a high of 1.2567 and a low of 1.2474. The key event for the CAD this week will come on Wednesday, as the BoC rate decision is announced.
NZD/USD: NZD/USD is losing the battle again to the greenback, despite some shoddy display in the US manufacturing sector. The kiwi is making fresh lows at the start of the month and a break of the handle and then the 0.7480 support would likely open up room for further downside towards 0.7440 as a key milestone for the month of February. The pair is currently trading at 0.7507 with a high of 0.7564 and a low of 0.7506.
GBP/JPY: GBP/JPY rose after UK economic data to test 185.00 but it was unable to break above and pulled back afterwards, erasing daily gains. Since last week the pair is moving sideways between 183.50 and 185.00, holding a slightly bullish bias on a wider perspective. During the last hours it had been hovering around 184.50 after bottoming at 184.17.
USD/CHF: USD/CHF is consolidating daily gains as it holds above 0.9550. A daily close above 0.9530 area that was an important short term resistance could strengthen the bullish perspective for the US dollar. Before reaching the new highs the pair was trading in a short term range moving between 0.9545 and 0.9580.
