This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Economic Weakness Boosts Dollar, Yen

NEW YORK ( BBH FX Strategy) -- The U.S. dollar is broadly firmer after weaker-than-expected data reports in China and the eurozone. The euro is erasing earlier gains and breaking below this week's previous lows around 1.313 after March's Purchasing Managers' Index composite disappointed expectations, even in Germany, with readings below the boom-bust level of 50.

Follow TheStreet on Twitter and become a fan on Facebook.

Sterling is down after February retail sales also disappointed. The dollar is softer against the yen, with USD-JPY breaking below 83.0. Global stocks are mixed, with the MSCI Asia up 0.4%. Despite the softer data, policy action gave some investors hope that China will ease policy further.

European stocks are faring much worse, down for the fourth day. The EuroStoxx 600 is down 1.1% with bank shares down nearly 1.5%.

Portuguese yields are coming down for a second day, despite a general strike organized by unions as a protest against the government's austerity measures.

Oil prices are down today from soft data worldwide, which is the lone bright spot today since high oil remains a big risk to the global recovery.

The theme of the day is one of economic weakness. New Zealand GDP (0.3% quarter over quarter vs. 0.7% previously), HSBC China PMI (48.1 vs. 49.6 previously), eurozone PMI composite (48.7 vs. 49.3 previously), and UK retail sales (-0.8% month over month vs. 0.6% previously, ex-auto fuel) all came in weaker than expected.

While some of these numbers can be volatile, the timing of the reports couldn't be worse given rising concerns in recent days about a China hard landing along with softer global growth. German manufacturing PMI was particularly weak, falling to 48.1 vs. an expected rise to 51.

Needless to say, the high beta currencies are taking it on the chin today while the dollar is largely firmer. Despite this week's corrective trade, most currencies remain within this month's trading ranges. Notable exceptions are AUD and ZAR, with the dollar today making new highs against them for March. The dollar seems likely to remain firm for now, but we need to see more trading ranges broken before declaring that the next leg of the dollar rally is upon us.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs