| About CMS | Forex Services | Trading Software | Forex Education | Forex Resources | My Account |
 |
||||||||||||
    |
||||||||||||
 |
||||||||||||
|
||||||||||||
US Existing Home Sales Fall 2% In US fundamental news, existing home sales fell 2% during March, to an annual pace of 4.93 million according to the National Association of Builders. Despite lower interest rates, some potential buyers continue to face restrictive lending practices while others are biding their time with a large number of homes to choose from. The price of an existing home was down close to 8% from last year. US Richmond Fed Index Slows to 0 in April The Richmond Fed Index showed that manufacturing activity declined further in April. It fell to a measure of 0 from 6 in March. Factory shipments and orders softened, and employment contracted again. Furthermore, respondents' outlook for the next 6 months deteriorated even more. EUR/USD - Breaks 1.60 For First Time, New Record Set
The Euro climbed to a new record high against the Dollar, breaching 1.60 for the first time, and hitting some resistance at the 1.6020 level. Overnight the pair climbed on the back of more hawkish comments from ECB officials. Governing council member Christian Noyer signaled policy makers may raise interest rates if consumer inflation doesn't slow. In NY trading, following the US releases, the Euro capped its 170 pip rally that started at the session low. Since Friday's low the pair has swung almost 300 pips. GBP/USD - Pound Regains Monday's Losses vs Dollar
The Pound took advantage of the Dollar's weakness and pared its losses from yesterday session. After hitting a low overnight at 1.9750 the Pound rallied 250 pips during European and NY trading to test the 2 to 1 level. Here the pair found resistance and the Dollar strengthened slightly. USD/CHF - Franc Tests Parity Against Dollar
The Dollar also fell lower to the Swiss Franc and Japanese Yen. The Franc had pared its Friday losses yesterday, and today it tested the parity level after strong swing at the NY open. The pair found support there and rebounded slightly as the NY trading session progressed. Carry trade sentiments were weak, as US stocks opened lower and financial earning reports showed more bad news than good news. Bank Of Canada Lowers Rates to 3% The Bank of Canada lowered rates by 50 basis points to 3% today. In the statement policy makers pointed to the sharp slowdown in the US economy and the effects that may have on the Canadian economy, such as lowering exports. The statement also cited tighter credit conditions as a factor in moderating business investment and consumer spending, and the need to offer stimulus with this cut. USD/CAD - Loonie First Loses, Then Gains After BOC Cut
First the Loonie fell on the news Loonie fell on the news, with the greenback testing 1.0150 in the hour following the release. As markets digested the release, expectations may be for the Bank to slow its pace of interest rate cuts, and to move to the sidelines once the rate reaches 2.5%. A new record high for oil prices, this time above 118 per barrel also boosted the Canadian Dollar as it pared its earlier losses and found support near 1.0025. Upcoming Releases Tonight Australia will reveal consumer prices data. Overnight Germany and the Euro-zone will post preliminary measures of services and manufacturing PMI. The UK will release the Bank of England meeting minutes. Finally, we will also get data on ne industrial orders from the Euro-zone. Tomorrow, Canada will reveal its retail sales, while the US posts Existing home sales. In the afternoon the Reserve Bank of New Zealand decides on interest rates. |
||||||||||||
