Fundamental

The SNB will announce their interest rate decision at 8:00 AM. The expectation is for unchanged rates. What will be of interest is if they change the wording on the value of the Swiss Franc.  Will they keep the wording the same at “it would prevent an ‘excessive’ rise in the franc” . The EURCHF is down at 1.4600 level - testing the SNB to address the currency in the comments.  The EURCHF had been using 1.4630 as the floor previously.  If they keep the language look for a further bias to the downside for EURCHF and possibly USDCHF.  The central bank is concerned about too strong a currency being deflationary but if global growth is rebounding,  it may be ok at this moment.  If they keep the language, look for 1.4630 to cap the topside for the EURCHF.

The Australian Westpac Consumer Confidence for March significantly bear the prior reading of -2.6% with a positive reading of +0.2%, helping the AUD move higher against the USD and JPY, continuing its push after the earlier comments from the RBA’s Lowe. The Consumer Confidence Index was also better than the prior month at 117.3 vs. 117. The AUD/USD pair  is continuing higher and approaching some resistance below the 92 cent handle.

Says:

Fed accomodation is likely to be appropriate for some time and the Fed Policy has been clear. Hiring is scarce but there are a few signs that hiring has increased.  He does warn that long term Unemployment could have lasting demand impact.  He sees a considerable amount of slack in the economy and as a result inflation is likely to remain signficantly below his specific benchmark.

Mr Evans is not a voting member on the current FOMC

The Canada Housing Starts will be released at 8:15 AM  with expectations fo a 190K gain. The USDCAD is testing floor support at the 1.0259 level.  There have been a number of bottoms at the level.  A break below will target the 1.0223 and 1.0207 levels for the pair which are the lows from January 14th 2010 and October 15th, 2009