Just wanted to give you a rundown of some important economic data that I promised yesterday I would fill you in on.
German Business Climate(EUR): This is info on the sentiment of the German business index which has declined to it’s lowest level in 26 years. It indicates that Germany is still knee-deep in its recession which is stated as the worst since WWII. Exports are down and as a result, more jobs have been cut and production has been scaled back.
U.S. New Homes sales unexpectedly rose to 337,000 units, up 4.7% from January. With existing home sales and new home sales up, it is a good sign but it doesn’t necessarily indicate that the housing market is ready for an upturn.
Durable goods data also unexpectedly showed a rise in demand for computer, defense equipment and machinery. The 3.4% increase is the most significant gain in over a year, as it was expected that there would have been a decline of 2.5 percent.
Surprisingly, none of this information helped move the markets dramatically today. The trends have been erratic for a few days now, making it harder to pinpoint when significant movement will take place. Seems like everything has either stalled or retraced some of its former progression. It is to expected as nothing will go up or down forever and everyday won’t be absolutely fantastic for trading. Last week and the week before, many of the currency pairs were skyrocketing. EUR/USD rose over 11 points, it is now consolidating. GBP/USD went up about 10 points before stalling….the same goes for EUR/JPY. NZD/USD and AUD/USD also had good runs of their own, gaining more than 7 points in that timeframe. So, like I said before…this pullback/consolidation period is to be expected, even if it may be at times, unpleasant.