France, UK to present mixed economic numbers for April, Euro under pressure

Bank of France Business Sentiment: We still think that many headwinds such as domestic policy uncertainty and geopolitical tensions remain and are likely to cap any substantial improvement in the business confidence over the coming months. The recent rise in oil prices and the euro might also weigh on the overall confidence in the manufacturing sector. The central bank will announce its first estimate for Q2 GDP growth. Indicator for the manufacturing sector is likely to increase from 97 to 98 in April, echoing the improvements recorded in the INSEE survey.

France Apr Headline Inflation: France is scheduled to release its April's headline inflation numbers on Wednesday. France records deflation for 3rd straight month in March. The inflation rate in France was recorded at 0.10% in March of 2015.

UK Manufacturing PMI: The latest PMI survey has shocked the markets with a big slip from 54.0 to 51.9 in April but data due for release this week are for March so we caution against expecting a weak number. The ONS has already provided a first estimate of overall Q1 manufacturing output growth of 0.1% QoQ, which implies a March figure of 0.5% MoM which we think is too strong.

Technical and Derivatives Watch:

We figured out the shooting star candlestick pattern occurred on intraday charts of EURUSD. CCI and fast stochastic oscillators are signaling overbought situations on this pair. We look ahead for some shorting opportunities on this pair for daily traders. Short coverings are to be strictly maintained. We recommend building shorts on near month futures of this pair. Margins money required to open fresh shorts positions.