Analysis and Recommendations:
The USD/CAD is holding at 0.9925 in mid day trading. The USD has picked up momentum against all of its trading partners. Enthusiasm and a positive view of the economy was the theme of the day as Timothy Geithner and Ben Bernanke testified in front of US Lawmakers.
While the reduction in financial stress in Europe is a welcome development, more needs to be done to fully resolve the crisis, says top U.S. central banker Ben Bernanke. Treasury chief Tim Geithner's also to deliver congressional testimony. The testimony gave an extra push to the USD. Both men had positive attitudes which translate into strength for the USD and the US economy on the whole.
The position of the United States has generally been that Europe needs to really step up and do a lot more, Bernanke said. He and Treasury Secretary Timothy Geithner testified before the House Oversight and Government Reform Committee.
European leaders must strengthen the banking system, build a stronger financial backstop to guard against contagion in sovereign-debt markets, and critically take steps to increase growth and competitiveness and reduce external imbalances in the region's troubled countries, Bernanke said.
Europe's financial and economic situation remains difficult, and it is critical that European leaders follow through on their policy commitments to ensure a lasting stabilization, Bernanke said.
In economic data in the US, the sales of existing homes fell 0.9% in February after an upward revision to the prior month, as improving job prospects, cheaper homes and warm weather led to the best start to the year since the bursting of the housing bubble. The housing market is ripe for a rebirth, now that the jobs market seems to be doing better.
Economic Data March 21, 2012 actual v. forecast
MI Leading Index (MoM)
Credit Card Spending (YoY)
All Industries Activity Index (MoM)
Thai Trade Balance
Thai Interest Rate Decision
MPC Meeting Minutes
Public Sector Net Borrowing
German 2-Year Schatz Auction
MBA Mortgage Applications
Leading Indicators (MoM)
Fed Chairman Bernanke Testifies
Existing Home Sales
Mexican Retail Sales (YoY)
Economic Events scheduled for March 22, 2012 affecting the USA and Canada
13:30 CAD Core Retail Sales (MoM)
13:30 CAD Retail Sales (MoM)
Core Retail Sales measures the change in the total value of sales at the retail level in Canada, excluding automobiles. It is an important indicator of consumer spending and is also considered a pace indicator for the Canadian economy. Retail Sales measure the change in the total value of
13:30 USD Initial Jobless Claims
13:30 USD Continuing Jobless Claims
Initial Jobless Claims measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week. Continuing Jobless Claims measures the number of unemployed individuals who qualify for benefits under unemployment insurance.
Government Bond Auctions (this week)
Mar 22 10:10 Sweden I/L bond auction
Mar 22 10.30 UK Auctions 0.625% 2042 I/L Gilt
Mar 22 15:00 US
Announces auctions of 2Y Notes on Mar 27, 5Y Notes on Mar
28 & 7Y Notes on Mar 29
USD/CAD Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3