Hello, it’s Monday 19 March 2012, and I’m
Martin Smith with the daily outlook from UFX Markets. The US Dollar fell against the majors. Federal
Reserve policy makers are expected to maintain economic stimulus after Core CPI came out
0.10% worse than the expected 0.20%. Stocks finished almost flat, the Dow declining by
-0.15% and NASDAQ by -0.04%. The S&P 500 rose by 0.11% and remains above the $1400 mark.
Crude Oil jumped by 1.86% closing at 107.05 a barrel after more tension with Iran. Gold
(XAU) fell by 0.22%, closing at $1,655 an ounce as low volatility remains in the markets.
No major economic data is expected today The Euro rose against the Dollar following
the weak U.S CPI news. The Euro’s main focus this past week has been the ECB’s cautious
view on inflation. As stocks remain in their highs and volatility down the Euro could continue
strengthening. EUR/USD main trend is still considered bearish but a break above 1.3200
could lead to an uptrend reversal. Current Account is expected with 3.3B vs. 2.0B previously.
The British Pound gained versus the Dollar following the Core CPI and speculations regarding
QE3. Short term yields in the U.K rose showing more confidence in the British economy. The
FTSE 100 gained by 0.42% at 5,965.58. GBP/USD trades within a channel between 1.5650 and
1.5900, a break above 1.5900 could lead to a rally. No major economic data is expected
today. The Yen remained unchanged versus the Dollar
and weakened versus the other majors as investors continue to bet against the Japanese currency.
The improvement in the U.S economy has shifted investors away from the safe haven of the
Yen, but instability in oil prices could lead to complications in global recovery. No major
economic data is expected today. The Canadian Dollar remained unchanged versus
the Dollar after weaker than expected CPI in the U.S but also weak economic data in
Canada. Foreign Securities Purchases came out with -4.19B versus 6.27B expected. Manufacturing
Sales came out worse with -0.9% decline versus 0.4% expected. Today, Wholesale Sales are
expected with 0.4% versus 0.9% prior.