USD Trading Outlook
U.S. Dollar Trading (USD) the EUR/USD short Squeeze failed to kick on in the European and US sessions yesterday and we found ourselves back at 1.3050 in Asian trade Friday. The outlook is mixed with the USD strong across the board after stronger than forecast economic data. US Preliminary GDP came in at 0.1% vs. -0.1% previously. Chicago PMI came in 56.8 vs. 54.3 forecast. Finally Weekly Jobless Claims came in at 344k vs. 260k forecast. Looking ahead, February Manufacturing ISM forecast at 52.5 vs. 53.1 previously. Fed Chairman Bernanke Speaks.
U.S. Dollar Trading (USD) the Dollar was sold late in New York overnight with US stocks soaring to fresh year highs after positive comments from FED Chief Bernanke and ECB Chief Draghi helped strengthen risk appetite. Fed Chairman Bernanke downplayed disunity inside the central bank and endorsed Japanese efforts to end deflation and return the Japanese economy to steady growth. Looking ahead, US Prelim GDP forecast at 0.5% vs. 0.1%. Weekly Jobless Claims forecast at 361k vs. 362k previously. Also Chicago PMI forecast at 54.6 vs. 55.6 previously.
U.S. Dollar Trading (USD) the Dollar was strong overnight with uncertainty regarding the Italian election outcome still hurting sentiment and generally upbeat US FED chief Bernanke’s testimony before congress helping support the USD bulls. Bernanke tried to calm market unease about the ending of QE3 too soon making the case that QE so far had been successful in helping the US recovery. December Case Shiller House Prices gained 6.8% vs. 6.7% previously. Looking ahead, Fed Chairman continues his testimony. January Durable Goods forecast at -4.4% vs. 4.3% previously.
U.S. Dollar Trading (USD) the Dollar gained on safe haven flows overnight with the EUR/USD sold off dramatically after exit polls suggested no clear majority in the recent Italian Elections. Stocks markets reversed and the Yen crosses were sold aggressively across the board with some capitulation flows seen in late New York trade. Looking ahead, December Case Shiller House Prices forecast at 6.6% vs. 5.5% previously. Fed Chief Bernanke Speaks before the Senate Banking Committee.
*Update HSBC February Flash Manufacturing PMI misses at 50.4 vs. 52.2 f/c*
U.S. Dollar Trading (USD) the Dollar enjoyed strength across the board Monday after a myriad of news over the weekend. Late on Friday at the close of New York we saw UK downgraded by Moody’s with the financial epicenter losing its prized AAA rating. The other major news over the weekend was the announcement from Japanese PM Abe that he would be asking ADB Kuroda to be the new BOJ Chief and that Ultra dove will be his Deputy. Looking ahead, no economic data tonight.
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