USD Trades HigherFebruary 26, 2014 Posted by: Joe O'Leary
The USD gathered strength overnight on speculation Fed Chair Yellen will reiterate the bank’s plan to cut the bond-buying program will continue at tomorrow’s Senate testimony. In addition, the USD was helped following the sharply higher (highest since 2008) new home sales data. The Chinese Yuan stabilized after officials described the recent move as normal and recent moves shouldn’t be misinterpreted. The State Administration of Foreign Exchange said China’s economic fundamentals are sound overall. The AUD is weaker after report show construction data declined. South Korea won reversed losses as exporters are repatriating funds.
• U.S. MBA mortgage market index sank 8.5% in data released earlier, along with a 3.5% drop in the purchase index and 11.4%.
• U.K. Q4 GDP confirmed at +0.7% q/q, y/y revised down to 2.7% from the initial estimate of 2.8%.
• U.S. new home sales surged 9.6% in Jan to 468k, above median 400k, vs. 427k Dec.
• BoE MPC member Dale said no rate rises "anytime soon," in an interview with Radio Ulster.
• Canada's GDP growth was negatively impacted by the weather in December, but strong activity in October and November.
02/27 EUR: Economic/Consumer/Industrial/Services Confidence Reports (Feb.)
02/27 USD: Durable Goods (Jan.)
02/28 EUR: Consumer Price Index (Feb.)
02/28 USD: GDP, 2nd release (Q4)
02/28 CAD: GDP YOY (Dec.)
02/28 USD: University of Michigan confidence. (Feb.)
03/03 GBP: PMI Manufacturing (Feb)
03/03 USD: ISM Manufacturing (Jan)
03/05 EUR: GDP (Q4)
03/05 USD: MBA Mortgage Applications (Feb 28)