The euro recorded gains against most of its major counterparts, even as Private Loans change for February came out positive but worst than expected. The Private Loans figure refers to the total value of loans issued by banks to the private sector. As borrowing and spending are positively correlated, and spending is needed for growth, this latest reading is particularly worrisome. It appears that banks are not passing the cheap money borrowed from the European Central Bank (ECB) - via the 1st long term refinancing operations (LTROs) - to individuals and companies. Against the Australian dollar, the single currency advanced to 1.2819 from 1.2759, recording a 3-month high.
The US dollar produced gains versus a basket of currencies as Crude Oil Inventories came out higher than expected and Core Durable Goods Orders as expected. Against the Japanese yen, the greenback dropped to 82.83 from 83.05. As the month approaches to its end, Japanese fund repatriation – needed for closing the books - should be expected to affect USDJPY to some extent. Versus the Canadian dollar, the US dollar rose to 0.9978 from 0.9957.
The Australian dollar plunged to 1.0391 from 1.0442 against the US dollar. The British pound took a dive against the greenback, opening at 1.5952 and closing at 1.5890. This came as the 4th quarter GDP was released lower than market consensus.
Oil prices fell to 105.22 from 106.54 dollars a barrel. Gold dropped to 1664.80 from 1680.92 US dollars an ounce. Against the euro, gold retraced to 1249.17 from 1262.21 an ounce. Silver fell to 32.1570 from 32.5967 dollars an ounce.
|EURUSD||1.3335||SHORT @ 1.3325||33% of deals buy EUR|
|USDJPY||82.50||LONG @ 82.55||58% of deals buy USD|
|GBPUSD||1.5880||LONG @ 1.5890||35% of deals buy GBP|
|AUDUSD||1.0405||LONG @ 1.0400||72% of deals buy AUD|
|GOLD||1671||LONG @ 1671||75% of deals buy GOLD|
|OIL||105.80||LONG @ 105.80||81% of deals buy OIL|
|EUR||09:00||Consumer Sentiment for March||-19|
|USD||12:30||4th quarter GDP annualised||3%|
|USD||12:30||Jobless Claims over past week||350k|
|FTSE 100||-1.03%||S&P 500||-0.49%||NIKKEI||-0.67%|