The housing market could help the equity market today to keep its creeping up. The US housing starts of Feb came better than the market expectations of .45m at .583m and the housing permits of the same month cam also higher than the market expectations of .51m at .547m. Dow closed up by 2.48% at 7396 and the main resistance is now at 7555 which was the main support of the index and the breaking of it has triggered stop loses and market pessimism lead to 6500 level and now we are about to test this level back and breaking it for the first time and it can be meet profit taken downside pressure by god's will.
The currency market was trading in a side range with no major change today waiting for tomorrow Fed's interest rate decision. The market is waiting for the fed's US economic assessment and hints about the next quantitive easing policy steps of the Fed in the face of the current recession and credit crisis to stimulate growth and also we need to know the current evaluation of the inflation risks of the Fed after cutting the interest rate to .25% and we wait in this coming US session for the US Feb CPI which is expected to be unchanged y/y and up by .3% again as last month monthly and the core figure monthly is expected to be .1% from .2% in Jan and 1.7% y/y as Jan.
Best wishes
FX Consultant Walid Salah El Din E-Mail: snipped-for-privacy@fx-recommends.com