The London session was characterized by USD strength against pretty much everything as economic data from across the pond surprised lower. European bourses have shed about -0.6% thus far and US futures are pointing to a similar negative open. Gold backed off -$7 to 927/926 as dollar strength led to some selling of the precious metal here. Treasuries are up modestly with the 10-year yield shedding -2 basis points to 2.72% in early NY.

Both GBP and EUR were hit hard on the poor fundamental news. The UK saw a surprising downward revision to 4Q GDP to an annual rate of -2.0% from -1.9% and the current account was a weaker -7.6B after a -8.2B the prior quarter. Cable shed a whopping -140 pips into the 1.4320/30 zone after a break of the 200hr moving average near 1.4430 saw the pair take a spill. Short-term resistance now lurks near 1.4340 and above sees another barrier into 1.4400 next.

In the eurozone it was industrial new orders that disappointed by declining to an annual rate of -34.1% in January after a -23.8% run-rate the prior month. This was a new record low since data began back in late 1994 and suggests capital spending remains more subdued than feared. EUR/USD dropped more than -200 pips towards the 1.3350/60 zone. The 200hr and hourly trendline break near 1.3485/80 elicited some strong selling pressure. Now a break below 1.3350/45 down trendline support should see a relatively quick visit to the 1.3300 area.

Upcoming Economic Data Releases (NY Session) prior expected

  • 3/27 12:30 GMT US Personal Income FEB 0.40% -0.10%
  • 3/27 12:30 GMT US Personal Spending FEB 0.60% 0.20%
  • 3/27 12:30 GMT US PCE Deflator (YoY) FEB 0.70% 0.80%
  • 3/27 12:30 GMT US PCE Core (MoM) FEB 0.10% 0.10%
  • 3/27 12:30 GMT US PCE Core (YoY) FEB 1.60% 1.60%
  • 3/27 14:00 GMT US U. of Michigan Confidence MAR F 56.6 56.6
  • 3/27 GE Consumer Price Index (MoM) MAR P 0.60% 0.10%
  • 3/27 GE Consumer Price Index (YoY) MAR P 1.00% 0.70%