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Monday, 28 March 2011

Action Insight Mid-Day Report 3-28-11

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Mid-Day Report: Aussie Firm, Euro and Sterling Soft in Quiet Markets

Markets are relatively quiet today. Some weakness is seen in Euro and Sterling but no follow through selling is noticed yet. Australian dollar is broadly firm but seems to be losing some upside momentum. Dollar is mixed in general even though some support is provided by comments from Fed officials regarding stimulus exits. Gold and crude oil pare some recent gains after failing to clearly take out recent highs. Data from US saw personal income and spending grew 0.3% and 0.7% in February already. PCE core, Fed's preferred gauge of inflation, rose slightly to 0.9% yoy as expected. Headline PCE rose to 1.6% yoy, inline with expectation. The data provides little inspiration to the markets.

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