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Video for April 8th, 2008 (3 min 12 sec): UK Housing Data Sinks Pound in Overnight Trading

NZ Business Confidence Declines to 34 Year Low

We begin in New Zealand where the Institute of Economic Research revealed that its measure of business confidence for the 1^st quarter fell to -64, a 34 year low. The decline was spread across all sectors and regions.

AUS Business Confidence Declines in Australia as Well

In Australia the NAB business confidence index for March saw conditions deteriorate as a result of demand eases and tighter credit conditions.

NZD/USD - Kiwi Trades in Channel Then Climbs Higher

 

The NZD/USD stopped its uptrend and traded lower following the weka confidnece reports. THe pair traded in a widening channel throughout the session. By 2:40 PM NY time, the Kiwi had penetrated the resistance and had climbed back to its levels from late yesterday.

UK Halifax House Price Index Plunges in March

The Halifax bank of Scotland index of housing prices plunged in March, registering a drop of 2.5% for the month. Annual prices were 1.1%, compared to February's 4.2%. Both results were much lower than expectations, pressuring the Pound after its release. The Bank of England, which decides on rates Thursday, may have to take a more aggressive posture during the rest of the year in order to remedy the slowdown in the housing sector.

GBP/JPY - Yen Gains on Pound Following Poor Housing Prices Release

 

The Pound fell around 240 pips to the Yen overnight after the release. The pair broke down below 203.20 and found support about 200 pips lower near 201.20. The pair ranged sideways during the NY session.

GBP/USD - Pound Slips 200 Pips vs. Dollar

 

The Pound-Dollar pair saw about a 200 pip swing overnight, as the pair fell to set a low near 1.9660. This level is the strongest the Dollar has been vs. the Pound since late February. Again NY trading, saw relative calm.

EUR/GBP - Euro Sets New All Time High vs Pound

 

In a third pair with the Pound, we see the Euro climbed 75 pips vs. the Pound and tested resistance near 0.7988. Today's high was a new record for the pair, as it reached a slight amount higher than its previous record set last Monday. Both the Bank of England and the European Central Bank will decide on rates Thursday morning with the expectations for the Bank of England to move to lower rates.

US Pending Home Sales Fall 1.9%

The number of pending home sales or contracts to buy previously owned homes, declined 1.9% in February. It's an indication that the housing market recession continues, and the bottom is not here yet.  The likely outcome is that housing prices continue to fall in the US and the Fed will remain pressured to continue its campaign of lowering interest rates. 

EUR/USD - Euro Jumps to 1.58 Then Retreats

 

The Euro-Dollar pair broke out of its MOnday trading range yesterday evenign. The Euro rally amounted to about a 100 pips. The rest of the session wiped out these Euro gains. The pair preceeded to trade slightly higher following the release of the Fed minutes. 

Upcoming Releases

Tonight we will get consumer confidence from the UK and Australia. Overnight, the Bank of Japan will announce their interest rate decision, where they are expected to hold. Later, the UK will post industrial and manufacturing production figures, and Germany will post its trade balance data.

The US has a light release schedule tomorrow with only data on wholesale and crude oil inventories in store, and a speech by Fed Chairman Bernanke.