Market Roundup
- Sterling climbs to $1.5040 after BOE minutes from $1.4935 beforehand.
- BOE - Further pick-up in wage growth needed for BOE to meet 2 pct CPI target.
- ECB'S Coeure tells Greek paper imposing capital controls on Greek banks is "not a working assumption"; ECB will continue to fund Greek banks as long as they are solvent and have adequate collateral.
- German Econmin Gabriel says it would be good if we could make progress on Greece but that's in the Greek govt's hands rather than ours.
- Greek Deputy Finmin says Greece aims to have 2.5 bln euro buffer from transfer of state entities' cash reserves to cover needs until end May.
- Italy Feb Industrial Sales mm sa increases to 0.4 % vs previous -1.60 %.
- Italy Feb Industrial Orders mm sa increases to 0.8 % vs previous -3.60 %.
- Italy Feb Retail Sales nsa yy decreases to 0.1 % vs previous 1.70 %.
- Italy Feb Retail Sales Sa mm decreases to -0.2 % vs previous 0.10 %.
- United Kingdom Apr BOE MPC vote cut stays flat at 0.
- United Kingdom Apr BOE MPC Vote unchanged stays flat at 9 (consensus 9.0 ) vs prev 9.
- United Kingdom Apr BOE MPC Vote hike stays flat at 0 (consensus 0.0 ).
Economic Data Ahead
- (0700 EDT/1100 GMT) US MBA Mortgage Application, previous -2.3%
- (0900 EDT/1300 GMT) US Housing Price Index mm, consensus 0.7%, previous 0.3%
- (1000 EDT/1400 GMT) US Existing Home Sales mm, consensus 5.05m, previous 4.88m
- (1000 EDT/1400 GMT) Eurozone Consumer Confidence, consensus -2.75, previous -3.70
Key Events Ahead
- (1300 EDT/1700GMT) Buba Dombret speech in New York.
FX Recap
EUR/USD failed to break above the 1.08 barrier in the European session and hit 1.7998 levels. It was boosted by ECB's Coeure comments after he told Greek newspaper that the ECB will continue to fund Greek banks as long as they remain solvent and have adequate collateral. On the topside, resistance is seen at 1.0800 levels, above which it could extend its gains to 1.0825 (April 21 High) levels. On the reverse side, support is located at 1.0700 and then at 1.0658 (April 21 Low) levels. Option expiries at 1.0650 (375M), 1.0700 (1.2BLN),1.0740 (318M), 1.0800 (3BLN).
GBP/USD rose to $1.5040 after BOE minutes from $1.4935 beforehand. It currently trades at 1.5028 levels. The minutes showed that the central bank policy makers see a hike in the interest rate over a three year forecast period. The pair has resistance at 1.5050 levels, and a break above could see the pair testing 1.5104 (100-DMA), while support is seen at 1.5 and then at 1.4964 levels.
AUD/USD is hovering around 0.7800 levels due to higher than expected CPI, good to buy at dips. It posted a high of 0.7806 levels and a low of 0.7703 levels so far. It has resistance at 0.7840 levels, above which gains could be extended to 0.7888 levels and further to 0.7938 levels. On the flipside, support is seen at 0.7770 levels, further below at 0.7735 levels and then at 0.7695 levels. Option expiries at 0.7655-60 (225M), 0.7800 (687M).
USD/JPY has broken below the 119.50 mark and likely found support at 119.40 levels, from the high of 119.77 levels seen earlier in the day. On the downside, a break below 119.40 levels could see the pair further falling to 119.30, 119.25 and 118.80 levels. On the other hand, resistance is located at 119.50 levels and a break above would make the way for 119.80 and then 120.00 levels. Option expiries at 119.00 (525M), 121.00 (1BLN).
USD/CHF continued its choppy trading seen in the past few sessions and traded in the narrow 0.9499-0.9560 levels so far in the day. The pair has major support at 0.95 levels and a convincing break below could drag it to 0.9477 levels. To the topside, resistance is seen at 0.9600 levels and a break above would expose 0.9617 levels.
