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