Analysis and Recommendation: (close of Asian session)

USD/JPY is trading at 82.94 as the Asian session closes. The USD regained strength and has climbed most of the day. Once the FOMC rate decision and minutes were released the greenback picked up strength against its trading partners.

The FOMC members held their course today, taking no new actions and offering few hints about their eagerness to start on future programs to strengthen the recovery. In their appraisal of the U.S. Economy, the central bank officers recognized increase in the employment market, but warned that business hazards remain and that inflation could rise briefly due to the current increase in gas and oil costs. All but one member voted to keep the central bank's easy-money policies in place after a one-day meeting of the Fed. Open Market Council, the Federal Reserve's policy-making body. The Federal Reserve repeated its goal to keep short term interest at low levels thru late 2014. 

Yesterday in JapanOverseas economies still have not emerged from a deceleration phase on the whole but some improvement has recently been observed in the U.S. economy and the sluggish European economy has stopped deteriorating, the central bank said. The BoJ kept key rates and also announced it would increase the amount of loans available through its growth supporting facility by 2 trillion yen ($24.35 billion). Today the BoJ statement gave a drop of strength to the Yen.

Japanese exporters are once again making ground as the dollar rose as high as 83.322 yen.

Japanese exported need the dollar to remain at 82.00 to be profitable.

US Retail sales climbed to a five-month high in February, as rising gasoline prices weren't enough to choke off demand for cars, clothing and other goods. The Commerce Department said Tuesday that retail sales rose a seasonally adjusted 1.1%

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March 13 after Asian Session and March 14, 2012 Asian Events actual v. forecast

Mar. 13

 

GBP

 
 
 

Trade Balance 

-7.5B

 

-7.8B 

 

-7.2B 

 
 

 

 

EUR

 
 
 

German ZEW Economic Sentiment 

22.3

 

10.5 

 

5.4 

 
 

 

 

EUR

 
 
 

ZEW Economic Sentiment 

11.0

 

3.8 

 

-8.1 

 
 

 

 

USD

 
 
 

Core Retail Sales (MoM) 

0.9%

 

0.8% 

 

1.1% 

 
 

 

 

USD

 
 
 

Retail Sales (MoM) 

1.1%

 

1.1% 

 

0.6% 

 
 

 

 

USD

 
 
 

10-Year Note Auction 

2.076%

 
 
 

2.020% 

 
 

 

 

USD

 
 
 

Interest Rate Decision 

0.25%

 

0.25% 

 

0.25% 

 
 

Mar. 14

 

KRW

 
 
 

South Korean Unemployment Rate 

3.7%

 

3.5% 

 

3.2% 

 
 

 

 

AUD

 
 
 

Westpac Consumer Sentiment 

-5.00%

 
 
 

4.20% 

 
 

 

 

JPY

 
 
 

BSI Large Manufacturing Conditions 

-7.3

 

1.3 

 

-6.1 

 
 

 

 

JPY

 
 
 

Industrial Production (MoM) 

1.9%

 

2.1% 

 

2.0% 

 
 

 

There are no significant economic events scheduled in Australia, New Zealand or Japan today.

13:30     USD       Core PPI (MoM)                                              0.2%                      0.4%                     

 13:30    USD       PPI (MoM)                                                       0.5%                      0.1%     

The Core Producer Price Index (PPI) measures the change in the selling price of goods and services sold by producers, excluding food and energy. The PPI measures price change from the perspective of the seller. When producers pay more for goods and services, they are more likely to pass the higher costs to the consumer, so PPI is thought to be a leading indicator of consumer inflation.                

 13:30    USD      Initial Jobless Claims                                     356K                      362K     

13:30     USD      Continuing Jobless Claims                                                          3416K

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.

13:30     USD      NY Empire State Manufacturing Index           17.4                        19.5       

The Empire State Manufacturing Index rates the relative level of general business conditions New York state. A level above 0.0 indicates improving conditions, below indicates worsening conditions. The reading is compiled from a survey of about 200 manufacturers in New York State.

 14:00    USD      TIC Net Long-Term Transactions                   29.3B                     17.9B    

Treasury International Capital (TIC) Net Long-Term Transactions measures the difference in value between foreign long-term securities purchased by U.S. citizens and U.S. long-term securities purchased by foreign investors. Demand for domestic securities and currency demand are directly linked because foreigners must buy the domestic currency to purchase the nation's securities.

15:00     USD       Philadelphia Fed Manufacturing Index        11.4                       10.2

The Philadelphia Federal Reserve Manufacturing Index rates the relative level of general business conditions in Philadelphia. A level above zero on the index indicates improving conditions; below indicates worsening conditions. The data is compiled from a survey of about 250 manufacturers in the Philadelphia Federal Reserve district.

Government Bond Auction Schedule     (this week)

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

umer?

USD/JPY Pivot Points (Time Frame: 1 Day)

 

Name S3 S2 S1 Pivot R1 R2 R3

Classic
81.2360
81.6925
82.4140
82.8705
83.5920
84.0485
84.7700

Fibonacci
81.6925
82.1425
82.4205
82.8705
83.3205
83.5985
84.0485

Camarilla
82.8115
82.9195
83.0275
82.8705
83.2435
83.3515
83.4595

Woodie's
-
81.7588
82.5465
82.9368
83.7245
84.1148
-

DeMark's
-
-
83.8203
82.9846
82.6423
-
-