Greenback mixed amid light trading

The dollar traded was slightly weaker and the euro relatively firmer as hawkish rhetoric continued to flow out of the Euro zone. ECB President Trichet noted his concern about inflation rates which supported the euro as EUR/USD rose above 1.4100 earlier in the session and is currently around 1.4090. Dollar weakness supported commodity currencies with Canadian dollar strengthening and the Aussie hitting new post float highs of above 1.0300.

U.S. economic data released today showing a stronger than expected rise in February personal spending while personal income for February was slightly weaker than anticipated. Personal spending surprised to the upside and advanced by +0.7% (cons. +0.5% prior +0.3%) and personal income was lower than the forecast of +0.4% with a print of +0.3% which was down from the prior +1.2%. Housing data released included February pending home sales which was expected at no change and came in at +2.10% MoM (prior -2.8%). The Dallas Fed Manufacturing Activity for March disappointed as it fell to 11.50 from the previous 17.5 (cons. 17.6).

U.S. equities traded with a positive tone throughout a light volume session and experienced a late day sell off finishing the day to the downside with the Dow Jones Industrial Average falling by roughly -0.19% and the S&P 500 closing lower by around -0.27%. Commodities were softer with oil leading the way lower by about -1.37% while the precious metals gold and silver continued to correct lower by around -0.70% and -0.42% respectively. U.S. 10-year Treasury yields inched higher by nearly 1bps to about 3.45%.

On the data front for the upcoming Asia/Pacific session are New Zealand trade balance figures for February as well as Japanese February employment data and retail trade.

Source: Forex.com

28.03.2011