Market Internals update

***Economic data***

– (BR) Brazil Mar FGV Construction Costs M/M: 0.4% v 0.4%e
– (HU) Hungary Central Bank (NBH) leaves Base Rate unchanged at 6.00%; As expected
– (US) Feb PCE Core M/M: 0.2% v 0.2%e; Y/Y: 0.9% v 0.9%e; PCE Deflator Y/Y: 1.6% v 1.6%e
– (US) Feb Personal Spending: 0.7% v 0.5%e; Personal Income: 0.3% v 0.4%e
– (GE) Germany Mar CPI North Rhine-Westphalia M/M: 0.5 v 0.6% prior; Y/Y: 2.0% v 2.1% prior
– (MX) Mexico Jan Global Economic Indicator: 5.9% v 5.6%e
– (US) Feb Pending Home Sales M/M: 2.1% v 0.0%e; Y/Y: -9.3% v -4.4% prior
– (US) Mar Dallas Fed Manufacturing Activity: 11.5 v 17.6e

– US equity indices are edging higher this morning on mixed spending data. Consumer spending rose more than expected in February, but analysts believe most of the increase went to cover higher gas prices. The headline PCE price index year-over-year growth rate was 1.6%, nearly twice the rate seen in January and the highest reading since last May. In an unexpected piece of good news for housing, gains were seen in February pending homes sales. May WTI crude is a bit lower this morning as Libyan opposition forces rack up gains against Gaddafi forces, following more coalition airstrikes.

– EUR/USD held a key hourly level at 1.4030 numerous times since the start of Asian session with renewed chatter of Far East sovereign bids taking advantage of the dips in the pair. Continued hawkish ECB speak also provided refuge for the Euro with ECB chief Trichet reiterating concerns about inflation persistently higher than the ECB’s 2.0% target. The yen remained softer against the major pairs but remained below the Mar 18th intervention lows. USD/JPY is just under the 81.99 high from the Fed intervention while EUR/JPY continues to consolidate below the 115.55 intervention highs.

***Looking Ahead***

– 11:00 (US) Fed to Purchase $5.5-7.5B in Notes/Bonds
– 11:30 (IS) Israel Central Bank Interest Rate Decision: Expected to raise the Base Rate by 25bps to 2.75%
– 11:30 (US) Treasury to sell $32B in 3-Month and $30B in 6-month Bills
– 12:00 (EU) ECB’s Bini Smaghi speaks in Milan
– 12:30 (CA) Bank of Canada Deputy Governor Boivin speaks in Montreal
– 12:40 (US) Fed’s Lockhart to speak on U.S. Economy in Atlanta
– 15:00 (AR) Argentina Jan Economic Activity Index M/M: No est v 1.1% prior; Y/Y: 8.8%e v 9.4% prior
– 15:40 (US) Fed’s Evans speaks to Reporters in South Carolina
– 16:00 (US) Fed’s Evans Speaks in South Carolina on Economy
– 13:00 (US) Treasury to s $35B in 2-Year Notes

This information was brought to you courtesy of TradetheNews.com, for your free trial Click Here