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!

Dollar Under Pressure at Month End

The second focus is on the European finance minister two-day meeting that begins today. The idea of a larger firewall until the middle of next year is the main issue, but should Spain or Italy need assistance the firewall is likely to prove insufficient. There may also be some agreement on personnel changes, including Juncker's replacement (likely Germany's Schaeuble).

We remain concerned that below the surface, the situation in the eurozone is actually deteriorating. It is not only a matter of a deeper economic downturn, but several policy developments are worrisome. An example of this deterioration Friday is the report out of Germany that the Bundesbank has indicated that it will no longer accept government-backed bank bonds as collateral from Greece, Portugal or Ireland.

The European Central Bank meets next Wednesday rather than Thursday due to the Easter holiday. On the data front, earlier today France reported its first increase in household consumption in four months (February 3.0% month over month vs 0.2% consensus). On the other hand, Germany reported an unexpected decline in February retail sales (-1.1% vs expectations of +1.2% following a 1.2% decline in January). The firmer CPI flash figures may have the ECB see upside risks to inflation, even as the real economy stagnates or worse.

U.S. Economy

The third focus Friday is on the state of the U.S. economy. February personal income and consumption data are expected to be firm. A 0.6% rise in PCE would be the strongest since last September. Personal income is expected to post a healthy 0.4% increase. However, the March Chicago purchasing managers index may come in softer, perhaps foretelling a moderation in next week's national figures. Moreover, the risk seems to be on the downside for next week's report of March auto sales and nonfarm payrolls.

Before the markets open on Monday, Japan will report the Tankan Survey. A modest increase in the diffusion index for large manufacturers to -1 from -4 is expected and an anticipation of a positive reading in June. Capex plans are likely to remain cautious, with a rise of about 1%.

In addition, China will report official PMI. In the past, when the Lunar New Year falls in February, the March PMI has tended to rise. A reading above 50 might ease some concerns about the pace of the slowdown in the world's second largest economy and help support regional currencies and commodity producers. There is also some talk that China will cut reserve requirements this weekend as the government has declared both Saturday and Sunday, together with Monday through Wednesday, of next week an official holiday.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.
2 of 2

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 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

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