The UBSConsumption Indicator came out at 1.67 just above the previous 1.62. There was no forecast for this release.
The CHF did not move much after this release.
The Gfk German Consumer Climate came out better than expected at 1.9 from the previous 1.8. A decline to 1.5 was forecast for this release.
The EUR was very bid across the board upon this release as it appears that traders have some "risk appetite" back. Despite this positive reading, the EUR did soften up after this data.
Reviewing yesterday's Yen retracement analysis, we see the 23.6% retracement levels have continued to hold as resistance on CAD/JPY pair, the CHF/JPYpair and the EUR/JPY pair. A technical move either through the lows or north above the 23.6% can provide some volatile short-term price action, as currencies around the world are searching for an equilibrium among this unprecedented volatility. Please see yesterday's blog (link provided above) for the details associated with this analysis.
The New Home Sales came in at 464K vs expectation of 450k. The prior month was lowered to 452k from 460k. The month supply of homes came in at 10.4 months from a higher 11.4 months last month.
Bill Gross of PIMCO is on CNBC talking on the Feds Commercial Paper Funding Facility. The rate that the Fed will paytoday is 2.88% for the top rate Corporate Commercial Paper. This rate is significantly lower than the3 Month LIBOR rate which came in at 3.5%. This should help to loosen the LIBOR rate as corporations will simply borrow through the US Treasury going forward.
