- Very light news flow
- Obama speaks on economy Tuesday
- Volumes extremely light
- BOC releases survey data, outlook cloudy
- Goldman Sachs earnings announcement before the bell tomorrow
- S&P closes 0.2% after trading lower most of the session
The euro rallied in nearly relentless fashion today. New York inherited the rate around the 1.3200 level after a very quiet European session with most out for the Easter Monday holiday. US traders had little clear conviction with most just trying to avoid getting caught in thin market conditions. The rally came on much lighter than normal volume (maybe a third of normal, according to interbank sources) but stop losses were picked off above 1.32 in Europe, 1.3235 in the US, 1.3300 and 1.3335 in the US. The rally ultimatley reached the 50% retracement of its recent decline at 1.3393 and has yet to quit. EUR/JPY was dragged higher by the EUR/USD rally and the resilience of the 100.00 level.
USD/JPY maintained the 100.00 level as EUR/JPY demand help keep a bid under the greenback. The cross reached the 133.80 area late in the US session.
Hopes China will lead the world out of recession were fanned by the March industrial production data (up 8.3%). That helped light a fire under AUD and took it to the highest levels of 2009 at 0.7325.
Bank earnings will be key the rest of the week. Goldman kicks off the reports tomorrow, followed by JPM, Citi and BoA later in the week.
