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Euro Drops to Three Week Low in New York

Posted by Joseph Trevisani on Apr 9, 2015 12:19:00 PM

Persistent if unspectacular euro selling from the open in New York has pushed the united currency as low as 1.0643, a level not seen since March 19th. 

Earlier, German industrial production for February had turned in a mixed performance.  The month was slightly better than forecast 0.2 percent vs. 01  percent  but January was revised down from 0.6 percent to -0.4 percent and the annual data  was much poorer than expected---0.3 percent vs 0.6 percent and again the prior month saw a large negative revision to flat from 0.9 percent. 

U.S. data was also indecisive. Initial jobless claims for the week of April 4th at 281,000 were a bit higher than the prior week's 267,000 but that continued the longest string of sub-300,000 claims in fifteen years. The four week moving average dropped 3,000 to 282,250 the lowest since late 2000. 

Wholesale inventories rose 0.3 percent in February a bit more than the 0.2 percent median estimate and wholesale trade decline 0.2 percent, a large miss of the 0.3 percent forecast and the third negative month in a row. January's figure was revised  down to -3.6 percent from -3.1 percent which followed December's -0.9 percent and November's flat readings.  Both sttistics reflect weaker demand at the retail level. 

The yield on the 10 year Treasury had gained 4 basis points to 1.95 percent as of 1:38 in the afternoon. 

There was no evident progress in the standoff between Greece and its creditors though Athens did make a 450 million payment to the IMF Greek equities added 1 percent on the news. The yield on the Greek 10-year note fell 28 basis point to 11.26 percent. Yanis Varoufakis the Greek finance minister expressed confidence that a deal would be struck with the Mediterranean nation's creditors by the April 24th deadline. 

The Athens stock market rose 1 percent to 776.03. 

There is support at 1.0580, the March 18th low and 1.0458, the bottom on the 16th and resistance at 1.0684 the high on the 12th and 1.0715 (top March 11 1.0717, low March 31st 1.0713 and April 1st 1.0719).

 

Joseph Trevisani

Chief Market Strategist

WorldWideMarkets Online Trading

Charts: Bloomberg

eur april 9 daily

eur min april 9

 

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