Monday, March 23, 2015

USD weakens across the board as euro recovers somewhat

•     USD weakens across the board as euro recovers somewhat
–    Traders cutting short positions in most currencies, according to COT report
–    Still high Eurozone current account surplus good for euro (but it also implies large capital outflows due to unprecedented low interest rates)
–    Indications that Merkel is determined to keep Greece in the Eurozone

•     Mixed signals from the US
–    Fed funds rate expectations fall as investors reconsider FOMC growth forecasts
–    BUT Treasury Secretary Lew repeats the old mantra “A strong dollar is good for America” and comments approvingly about loose monetary policies abroad

•     Podemos gets only 15% of vote in Andalusian election
•     Today:
–    Eurozone: Eurozone consumer confidence – not that market-affecting. Merkel meets with Tsipras
–    Switzerland:  Weekly sight deposit data to show intervention
–    US: existing home sales for Feb forecast to increase a bit
–    Speakers:  Draghi, two regional Fed presidents, Fed Vice Chair Fischer.

•     This week:
–    Tuesday: PMIs from Eurozone countries; UK CPI; US CPI
–    Wednesday:  German Ifo survey; US durable goods
–    Thursday: UK retail sales

–    Friday: End-of-month data dump from Japan, including CPI

No comments:

Post a Comment