Analysis and Recommendations:

The USD/CHF is trading at 0.9107 down 0.0049. This pair tells the story of the entire European market today. There was absolutely no news or support for the Franc. The USD held through most of the session and towards the end of the European trading day, the greenback began to fall against all of its major trading partners.

There was little in the way of news or economic data released in the US today, two minor reports, which were within forecast and in line with current economic recovery.

Confidence by builders of new single-family homes remained unchanged in March. Sentiment for builders of new single-family homes stayed at the highest level in close to five years.

Improvements in U.S. job market trends and an upward revision in income growth are important factors that could help the housing market turn a corner, though rising gasoline prices may pose a hurdle, according to mortgage company Fannie Mae (FNMA).

Investors began to feel confident last Friday after a week of positive news and data, and they began to move into higher risk territory, including equities.

This move continued in today's trading.

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Economic Data for March 19, 2012 actual v. forecast

 

GBP

 
 
 

Rightmove House Price Index (MoM) 

1.6%

 
 
 

4.1% 

 
 

 

AUD

 
 
 

RBA Governor Stevens Speaks 

 

 
 
 
 
 
 

 

EUR

 
 
 

Current Account 

4.5B

 

4.3B 

 

3.4B 

 
 

 

EUR

 
 
 

Italian Industrial New Orders (MoM) 

-7.4%

 

-3.8% 

 

5.2% 

 
 

 

CLP

 
 
 

Chilean GDP (YoY) 

4.5%

 

4.2% 

 

3.7% 

 
 

 

CAD

 
 
 

Wholesale Sales (MoM) 

-1.0%

 

0.4% 

 

1.0% 

 
 

 

USD

 
 
 

NAHB Housing Market Index 

28

 

30 

 

28 

 
 

 

USD

 
 
 

3-Month Bill Auction 

0.095%

 
 
 

0.095% 

 
 

 

Economic Events Scheduled for March 20, 2012 Europe and Americas

09:15     CHF         Industrial Production (QoQ)

Industrial Production measures the change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities.                                                                                       

10:30     GBP      Core CPI (YoY)

10:30     GBP      CPI (YoY)

The Core Consumer Price Index (CPI) measures the changes in the price of goods and services, excluding food and energy. The CPI measures price change from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.                                       

12:00     GBP      CBI Industrial Trends Orders

The Confederation of British Industry (CBI) Industrial Trends Orders measures the economic expectations of the manufacturing executives in the U.K. It is a leading indicator of business conditions. A level above zero indicates order volume is expected to increase; a level below zero indicates expectations are for lower volumes. The reading is compiled from a survey of about 550 manufacturers.                                                                                                       

13:30     USD      Building Permits            

Building Permits measures the change in the number of new building permits issued by the government. Building permits are a key indicator of demand in the housing market.                      

13:30     USD      Housing Starts

Housing starts measures the change in the annualized number of new residential buildings that began construction during the reported month. It is a leading indicator of strength in the housing sector.

 

Government Bond Auctions (this week)

Mar 21  10:10  Sweden  Nominal bond auction

Mar 21  10:30  Germany  Eur 5.0bn Mar 2014 Schatz

Mar 21  10:30  Portugal  Eur 0.75-1.0bn 4 & 6M T-bills

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/CHF Pivot Points (Time Frame: 1 Day)

 

Name S3 S2 S1 Pivot R1 R2 R3

Classic
0.8990
0.9041
0.9077
0.9128
0.9164
0.9215
0.9251

Fibonacci
0.9041
0.9074
0.9095
0.9128
0.9161
0.9182
0.9215

Camarilla
0.9089
0.9097
0.9105
0.9128
0.9120
0.9128
0.9136

Woodie's
-
0.9037
0.9069
0.9124
0.9156
0.9211
-

DeMark's
-
-
0.9146
0.9119
0.9059
-
-