- US initial jobless claims dip to 646,000, continuing claims rise to new record
- Philly Fed survey improves to -35 in March from -41.3 in January
- US index of leading economic indicators falls 0.4% , slightly beats expectations
- Canadian CPI rises 0.7%, worse than forecasts
- Goldman forecasts EUR/USD rise to 1.4000
- US auto parts makers receive $5 bln bailout
- EU officials: No more economic stimulus needed this year
- German government sees 5% GDP decline in 2008; official forecast -2.25%
- SNB’s Jordan: Still intervening ad hoc; designed to weaken CHF but not disadvantage neighbors
- “AIG tax” passes in House
- Oil closes at $51.00 after breaking key resistance at $50.50; trades as high at $52.25 early
- Gold continues recover, closes at $958, up nearly $75 in 24 hours
- Stocks retrench modestly, lose 1.3%
EUR/USD extended its gains this morning in explosive fashion, rising as high as 1.3737 before falling into a much needed consolidation. Pullbacks were very modest with support building now at 1.3520. Goldman’s call for a move to 1.40 was a catalyst for the early strength as was a rise in oil through resistance at $50.5. New York range 1.3483/1.3737.
USD/JPY found support on pullbacks initially around the 94.50/60 level amid talk the BOJ was phoning around, taking the pulse of the market. When they failed to pull the trigger, dealers went after stops and USD/JPY quickly slide to 93.55 before steadying. Prices recovered back to the 94.50 area on the close. New York range 93.55/95.15.
GBP/USD benefited from short-covering with profit-taking in EUR/GBP a feature after a very strong rally in recent session. Goldman Sachs recommended GBP today in addition to EUR/USD. New York range 1.4461/1.4595.
EUR/CHF rallied above 1.5400 again this afternoon amid comments from SNB board member Jordan who suggested intervention to weaken the franc could continue. Comments that there was no intent to “beggar thy neighbor” took the steam out of the rally. The cross closed around 1.5360. New York range 1.5315/1.5423.
AUD/USD was a darling, getting a lift from wide-spread fear that inflation is set to run rampant and talk that China was hedging USD exposures by buying raw materials. China was also rumored buying AUD around the 0.6800 in London this morning. AUD topped out at 0.6943 at midday in New York before closing at 0.6845. The New York range was 0.6810/0.6943.
