|
|
|
|
Euro
Commentary The euro depreciated vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.3415 level and was capped around the $1.3495 level. The common currency pushed lower as traders speculated that more countries may ask the U.S. for information about Goldman Sachs’s business practices, particularly with regard to the manner in which Goldman structured some sub-prime mortgage securities that were sold to international investors. Germany is said to be pressing the U.S. for additional information. The common currency came off on this news on the premise that the enforcement action against Goldman may have a dampening effect on global equities, notwithstanding the fact that U.S. equities rallied today. Also, the euro moved lower as the Icelandic volcano that erupted last week continues to snarl air traffic, leading to a general disruption of
business activity around the Continent. Data released in the U.S. today saw March leading indicators print at +1.4%, up from the revised prior reading of +0.4%. Outgoing Federal Reserve Vice Chairman Kohn reported regulators should improve their data analysis while Chicago Fed President Evans reiterated the economy is recovering. President Obama will be speak in New York on Thursday at Cooper Union and Treasury Secretary Geithner today noted new regulations are needed so that the U.S. financial system is not vulnerable to “the reckless choices of individual firms.” In eurozone news, EMU-16 February construction output was off 3.3% m/m and 15.2% y/y. Euro bids are cited around the US$ 1.3175 level. SUPPORT RESISTANCE L1. 1.3405 1.3965 L2. 1.3245 1.4200
L3. 1.3085 1.4495
|
|
|
