Market Roundup
- US March Import Prices -0.3%; Export Prices +0.1%; USD slips initially, rebounds later
- Canada Unemployment rate 6.8%; Participation rate 65.9%; Employment +28.7k, Full-Time -28.2k, Part-Timt +56.8k
- CAD whipped about on mixed employment numbers
- UK NIESR estimates UK GDP grew 0.6% in Q1
- Fed's Lacker: Case for raising rates will remain strong at June FOMC; Doesn't see problem of hiking rates then moving back to zero if needed
- Fed's Kocherlakota repeats call for delay to rate hikes until 2nd half of 2016
- G7 Finance Ministers, Central Bankers to hold informal meeting ahead of G20 Ministerial in Washington next week
- (1945 ET/ 2345 GMT) NewZealand March Electronic card retail sales (previous m/m 1.0% & y/y 3.8%)
- (1950 ET/ 2350 GMT) Japan Feb Machinery orders (consensus 3.7%, previous 1.9%)
- (1950 ET/ 2350 GMT) Japan March Corp good price (m/m consensus -0.10%, y/y consensus +0.40%)
- (2200 ET/ 0200 GMT) China March Trade balance (consensus bln, previous bln)
- (1950 ET/ 2350 GMT) Japan BoJ Monetary Policy Meeting Minutes
FX Recap
USD/JPY is currently trading at 120.13 with a high of 120.63 and a low of 120.04. 119.60 would stand as a key support for the pair, where bulls may look for cheap dollars in an environment where the greenback remains in favour. The pair remains within ranges and until there is a catalyst, the major is likely to drift to and fro between the February low at 116.64 and the December and March highs at 121.86/122.04. Option expiries Monday 13th April: 121.00 (482M). NB - there are USD 2bln 1.2100 on Tuesday
USD/CAD fell below 1.2600 levels as US dollar lost the grip vs. its Canadian peer on Friday. USD/CAD retreated from fresh weekly highs around 1.2670, as the upside momentum ran out of steam and triggered a correction. Currently the pair is trading at 1.2585, up 0.05%. Next hurdle is at 1.2668 (high ) followed by 1.2710 (high Apr.1) and finally 1.2784 (high ). Supports for the pair liea at 1.2578 (low Apr.1), 1.2574 (high Apr.3) and then 1.2559 (low Apr.8).
EUR/USD: Increasing Greece uncertainty has been a source of weakness for the EUR, adding to the selling interest. EUR/USD spot eroded the gains of the previous two weeks and returned to levels last seen in mid-March around 1.0580. The pair has lost almost 400 pips, more than 3.5% down over the week. ECB Governing Council will meet on Wednesday. No change is expected in monetary policy but Draghi's press conference could impact the euro. Supports are at 1.0551 (low ) and then 1.0457 (12-year low ). On the flip side, resiatamces are at 1.0685 (hourly high ), 1.0788 (high Apr.9) and 1.0797 (10-DMA). Option expiries Monday 13th April: 1.0550 (308M), 1.0630 (230M), 1.0670-75 (825M), 1.0750 (1.1BLN)
GBP/USD sees some profit booking around the 1.4600 level in to the closing session of the week. Cable is currently trading at 1.4647 with a high of 1.4726 and a low of 1.4585. GBP/USD's 1.50000 sell off has marked a renewed leg of bearishness that targets space towards the 1.4300 area. Supports lie at 1.4596, 1.4560 and 1.4524, while on the flipside resistances are at 1.4801, 1.4838 and 1.4875.
