By Peggy Truong | March 01 2012 10:01 AM
As we approach New York closing, markets are still in a euphoric mood, with DOW JONES up and S&P 500 so far its biggest monthly rally for many years! The markets are clearly in a more positive mood these days, and news today that economic growth was at its lowest did not seem to make any difference!
The EUR/USD did not manage to break higher than important 1.3630 resistance today and at the time of writing the pair is trying to test 1.3520 good support for now. A clear break of the latter level may open the way for further losses towards 1.3460. The dollar seems stronger today across the board and that shows how fragile things are still in the economic outlook in Euro zone and UK. Investors are not totally convinced yet about the euro€™s upside, however there are a few days left for the month end and therefore what we witness today may be simply profit taking before another leg upwards towards 1.38 or even 1.40
Today the economic calendar had a few important releases from UK, with retail sales coming out worse than expected, giving the pound a reason to fall once again! The economic situation is still unclear and BOE has a tough job to do these days, what with its rates close to zero and inflation coming out higher! Also today we had jobless claims, with another record high number of 652.000 and a prospect that payroll data may reach a new low in the coining days! Investors are clearly ignoring the bad data these days, as their new found confidence in Obama€™s and Geithner's plans seem to be holding for now, however the coming days will confirm if the current rally has an expiration date!
There are many issues that traders are monitoring at the moment, and the fact that next week we have the much awaited G20 in London, where many global issues will be discussed, makes investors even more wary about the economic future. The recent call by China to change the dollar as the only currency reserve, was met by objections from US government, however it was confirmed today that the issue will be discussed in next week€™s meeting.
Traders will monitor every word being said by G20 officials and therefore the markets may be choppy until the meeting commences. Let€™s not forget that in the coming weeks we have the payroll data out of US which could potentially give us another negative number and it will be crucial for the market€™s direction to see how traders react in the aftermath of the events!
The euro still has potential to continue its recent rally against the dollar judging by the daily and weekly charts, as long as 1.33 remains untouched for now. The question is if the current euro correction is just a simple correction before another upside move occurs or if the dollar will come back to haunt the euro due to risk aversion€¦
Gold gained for the second straight day as some more dismal economic data increased the precious metal's hedge value. The metal had dropped in six of the previous seven sessions.
April gold finished at $940.00, up $4.20 for the session. Prices touched as high as $948.50 earlier in the session.
A Commerce Department report showed that fourth quarter gross domestic product fell by a revised 6.3 percent, compared to the preliminary estimate of a 6.2 percent decrease. Economists had been expecting GDP to be revised to show a somewhat steeper 6.6 percent contraction.
The U.S. Labor Department announced initial jobless claims rose to 652,000 for the week ended March 20th, compared to the previous week's level of 644,000. Meanwhile, people continuing to collect unemployment rose to 5.56 million in the most recent data, compared to the previous mark of 5.438 million.
The dollar saw some strength on Thursday, limiting gold's hedge appeal. The greenback advanced versus the sterling and yen, paring recent losses, and was stable versus the euro.
Gold's hedge appeal was boosted by rising oil prices. Light sweet crude oil for May delivery ended at $54.35, up $1.58 for the day.
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Everybody's favorite guidette, Snooki, is pregnant.
After months of speculation, the Jersey Shore star, whose real name is Nicole Polizzi, is indeed expecting her first child with boyfriend Jionni LaValle.
She's about three to four months along, a source told E! News.
According to the New York Post, Snooki, 24, is also planning an elaborate marketing deal around her pregnancy.
While Snooki herself has yet to confirm the pregnancy, fans (famous and regular) of the reality TV star have been tweeting messages about the bundle of joy.
Snooki is pregnant. I hope that fetus enjoys Jaegermeister, wrote Zach Braff.
Snooki is pregnant with my child. We were in the same hot tub last spring & I farted :(, joked comedian Rob Delaney.
Snooki is the latest celebrity to hit the famous baby newsfeeds. Jessica Simpson and Hilary Duff are ready to give birth any day now, while earlier this week, Uma Thurman announced that she was pregnant with boyfriend Arpad Busson's baby.
Click through for other expectant celebrities. Congratulations to all the famous baby mamas!

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