Market Roundup
- US Employment Costs Q1 0.7%, (consensus 0.6%, previous 0.50%)
- US Chicago PMI Apr 52.3, (consensus 50, previous 46.3)
- US Initial Jobless Claims w/e 262k, (consensus 290k, previous 296k)
- US data releases show signs of growth, USD reverses Wed GDP-related losses
- Brazil Primary Budget Surplus Mar 0.239b, (consensus 5.150b, previous -2.300b)
- US economy on track to grow at 0.9% in Q2 (Atlanta Fed’s GDPnow)
- UK’s Labour Party leads conservatives by 2 points ahead of May 7 election (Panelbase)
- IMF spokesman says fund does not expect Greece to exit EZ
- Canada GDP MM Feb 0%, (consensus -0.1%, previous -0.20%)
- Mexico Interest Rate Apr 3%,(consensus 3%, previous 3.00%), wary of weak fx lifting inflation
- Reuters Poll Global investors make small cuts to stock exposure start building cash
Economic Data Ahead
- (1930 ET/ 2330 GMT) Japan All Household Spding YY mar (consensus -12.1%, previous -2.90%)
- (1930 ET/ 2330 GMT) Japan All Household Spending MM Mar (consensus 0.5%, previous 0.80%)
- (1930 ET/ 2330 GMT) Japan CPI, Core Nationwide YY Mar (consensus 2.1%, previous 2.00%)
- (1930 ET/ 2330 GMT) Japan CPI, Overall Nationwide Mar (previous 2.20%)
- (1930 ET/ 2330 GMT) Japan CPI Core Tokyo YY Apr (consensus 0.5%, previous 2.20%)
- (1930 ET/ 2330 GMT) Japan CPI, Overall Tokyo Apr (previous 2.30%)
- (1930 ET/ 2330 GMT) Japan Unemployment Rate Mar (consensus 3.5%, previous 3.50%)
- (1950 ET/ 2350 GMT) Japan Foreign Bond Investment w/e (previous 432.0b)
- (1950 ET/ 2350 GMT) Japan Foreign Invest JP Stock w/e (previous 595.2b)
- (1930 ET/ 2330 GMT) Australia AIG Manufacturing Index Apr (previous 46.3)
- (2100 ET/ 0100 GMT) China NBS Non-Mfg PMI Apr (previous 53.7)
- (2100 ET/ 0100 GMT) China NBS Manufacturing PMI Apr (consensus 50, previous 50.1)
- (2130 ET/ 0130 GMT) Japan Overtime Pay Mar (previous 0.40%)
- (2135 ET/ 0135 GMT) Japan Manufacturing PMI Apr (previous 49.7)
Key Events Ahead
- No Significant Events
FX Recap
USD/JPY bottomed at 118.49, a 1-month low during the Asian session, but then rose more than a 100 pips, erasing weekly losses. The pair extended gains during the US session and peaked at 119.90, a fresh 1-week high and then retreated modesty and dropped to 119.55. Currently the pair trades at 119.40, its best performance in three weeks. Support for the pair lies above 118.50 and resistance below 120.00 and at 120.50. Option expiries Friday 1st May: 118.00 (1.3BLN), 119.00 (1.2BLN), 120.00 (420M), 121.00 (1.1BLN)
EUR/USD: EUR is buoyant vs. the USD on Thursday, extended its positive streak to three weeks. EUR/USD was choppy, edged back to 1.1200 from day’s high of 1.1250. The only release in the euro area will be the Spanish Manufacturing PMI by Markit, whereas the ISM Manufacturing, Markit’s PMI and the Reuters/Michigan index will be grab all the attention across the pond. Currently the pair is trading at 1.1194, up 0.59%. Immediate resistance is at 1.1250 (high Apr 30) ahead of 1.1280 (76.4% of 1.1534-1.0457) and finally 1.1307 (100d-MA). Supports are at 1.1152 (daily cloud top) followed by 1.1072 (low Apr 30) and then 1.0960 (low Apr 29). Option expiries Friday 1st May: 1.1000 (1.6BLN), 1.1070 (1.4BLN), 1.1100 (909M), 1.1200 (903M), 1.1250 (1BLN)
USD/CHF: Greenback weakened across the board during the American session and extended losses versus the euro and the Swissy. USD/CHF failed to hold above 0.9400 and during the last hours fell sharply to test daily lows at 0.9325. The Swiss franc is headed toward the second monthly gain in a row. On the upside, resistance levels could be located at 0.9445/50 (daily high) and 0.9485. On the flipside support might lie at 0.9300 and 0.9250. Option expiries Friday 1st May: 0.9500 (240M)
GBP/USD: After having traded at the highest levels since 25th Feb, GBP/USD is losing territory. GBP/USD is currently trading at 1.5325 with a high of 1.5493 an a low of 1.5302. Cable is now testing the rising support line and the 38.2% of the move up from the April 27. A break of this fib level and support zone between 1.5340/20 opens up deeper lines of support with 1.5260/00 being exposed next. Option expiries Friday 1st May: 1.5100 (228M), 1.5450 (272M), 1.5500 (413M)
The material has been provided by InstaForex Company – www.instaforex.com