Analysis and Recommendations:
The USD/CHF trading at 0.9198 after the USD piqued earlier on positive retail sales data, the Swissie began to move up as investors began to think about the FOMC decision and minutes. Although the market does not expect a rate change, the minutes might give some indication as to what to expect from the Feds in the near term.
Otherwise there was little news in the markets, the ZEW consumer sentiment came back much over forecast.
Spanish deficits became the focus for the EU.
Economic Data March 13, 2012 actual v. forecast
Tertiary Industry Activity Index (MoM)
RICS House Price Balance
Home Loans (MoM)
NAB Business Confidence
Interest Rate Decision
French CPI (MoM)
Hungarian CPI (YoY)
Swedish CPI (YoY)
German ZEW Economic Sentiment
ZEW Economic Sentiment
Core Retail Sales (MoM)
Retail Sales (MoM)
Economic Calendar March 14, 2012
10:30 GBP Average Earnings Index +Bonus 1.9% 2.0%
10:30 GBP Claimant Count Change 6.0K 6.9K
The Average Earnings Index measures change in the price businesses and the government pay for labor, including bonuses. Claimant Count Change measures the change in the number of unemployed people in the U.K. during the reported month. A rising trend indicates weakness in the labor market, which has a trickle-down effect on consumer spending and economic growth.
11:00 EUR CPI (YoY) 2.7% 2.7%
11:00 EUR Industrial Production (MoM) 0.7% -1.1%
11:00 EUR Core CPI (YoY) 1.6% 1.5%
This is a triple report covering all of the eurozone. The Consumer Price Index (CPI) measures the change in the price of goods and services from the perspective of the consumer. Industrial Production measures the change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities.
13:30 USD Current Account -114.0B -110.0B
The Current Account index measures the difference in value between exported and imported goods, services and interest payments during the reported month. The goods portion is the same as the monthly Trade Balance figure. Because foreigners must buy the domestic currency to pay for the nation's exports the data can have a sizable affect on the USD.
13:30 USD Import Price Index (MoM) 0.6% 0.3%
The Import Price Index measures the change in the price of imported goods and services purchased domestically.
15:00 USD Fed Chairman Bernanke Speaks
Federal Reserve Chairman Ben Bernanke (February 2006 - January 2014) is to speak. As head of the Fed, which controls short term interest rates, he has more influence over the U.S. dollar's value than any other person. Traders closely watch his speeches as they are often used to drop hints regarding future monetary policy
Government Bond Auction Schedule (this week)
Mar 14 10:10 Italy BTP/CCTeu auction
Mar 14 10:10 Sweden Auctions T-bills
Mar 14 10:30 Swiss Bond auction
Mar 14 15:30 Sweden Details nominal bond exchange auction on Mar 21
Mar 14 18:00 US Auctions 30Y Bonds
Mar 15 09:30 Spain Obligacion auction
Mar 15 09:50 France BTAN auction
Mar 15 10.30 UK Auctions 4.5% 2042 conventional Gilt
Mar 15 10:50 France OATi auction
Mar 15 16:00 US Announces auction of 10Y TIPS on Mar 22
EUR/CHF Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3