NEWS / Foreign Exchange

Stocks coming back after New Home Sales

The market seems to remember the much stronger than expected Existing Home Sales from Friday. Stocks could go higher on this.

Overnight News Bullets

• French Business Confidence Indicator (Mar) out at 109 vs. 107 expected.
• French Production Outlook Indicator (Mar) out at -1 vs. -2 expected.
• Swedish Trade Balance (Feb) out at 11.9B vs. 12.5B expected.
• German CPI North Rhine-West. MoM (Mar) out at 0.5% vs, 0.4% previously.
• US New Homes Sales (Feb) out at 848K vs. 985K expected (7-year low). MoM out at -3.9% vs. 5.4% expected.
• Japanese Corporate Service Price YoY (Feb) out at 0.4% vs. 0.6% expected.
• Australian HIA Home Sales MoM (Feb) out at 2.9% vs. 5.8% previously.
• The Fed??™s Moscow spoke in Beijing; expressing concerns over inflation.

Markets

• FX: USD weakening on the disappointing new home sales.
• Fixed Income: US10Y??™s ranging, Bunds falling, despite housing data.
• Stocks: European session weak. US saw strong rejection of new lows after housing data. Nikkei down.
• Commodities: Precious metals edging higher. Crude oil soon testing the highs from December.

O/N Data Heat map:

Calendar

Today's Highlights:

This and Next Week??™s Highlights:

What's going on?

• Stocks came back strongly after the disappointing New Home Sales. New ?‰? 13% of Existing Home Sales and Existing Home Sales were a lot stronger than expected on Friday. 
• European stocks should be well supported by the end-of-day rally in the US yesterday. Today??™s Consumer Confidence could change that.
• USD likely to weaken slightly today. GBPUSD about to break higher. Look out for CAD in the next couple of days ??“ especially on Friday.
• Focus on IFO figures today.

FX

GBPUSD close to breaking higher