Market Roundup
- Canada Wholesale Trade MM Feb -0.4%, f/c 0%, -2.9%-prev, USD/CAD shrugs off miss
- United States w/e redbook mm decrease to +0.1 % vs prev 0.2 %
- United States w/e redbook yy decrease to +0.8 % vs prev 1.1 %
- Argentina Mar trade balance decrease to +43 mln $ (fcast 76 mln $) vs prev 53 mln $
- Hungarian central bank cuts main interest rate by 15 bps to 1.8 pct
- EU’s Juncker says Greece needs to make more efforts in debt talks
- Greece’s Varoufakis optimistic over deal with EU/IMF lenders, not likely by Friday
- White House adviser Furman says should not take comfort in relative calm of financial markets in face of Greece, “things can change quickly”
- Dijsselbloem Greek exit of EZ would lead to dangerous instability for Greece/Europe
- Wary of brinkmanship, euro zone won’t set more deadlines for Greece
- Fiscal freedom for Scotland would mean spending cuts, tax rises (Inst for Fiscal Studies)
- Britain’s Labour 2 points ahead of Conservatives in TNS pre-election poll
Economic Data Ahead
- (1950 ET/ 2350 GMT) Japan Exports YY Mar (consensus 8.5%, previous 2.4%)
- (1950 ET/ 2350 GMT) Japan Imports YY Mar (consensus -12.8%, previous -3.6%)
- (1950 ET/ 2350 GMT) Japan Trade Balance Tot Yen Mar (consensus 50.0b, previous -424.6b)
- (2130 ET/ 0130 GMT) Australia CPI QQ Q1 (consensus 0.2%, previous 0.2%)
- (2130 ET/ 0130 GMT) Australia CPI YY Q1 (consensus 1.3%, previous 1.7%)
- (2130 ET/ 0130 GMT) Australia RBA Wghtd Medn CPI QQ Q1 (consensus 0.5%, previous 0.7%)
- (2130 ET/ 0130 GMT) Australia RBA Wghtd Medn CPI YY Q1 (consensus 2.3%, previous 2.3%)
- (2130 ET/ 0130 GMT) Australia RBA Trim Mean CPI QQ Q1 (consensus 0.6%, previous 0.7%)
- (2130 ET/ 0130 GMT) Australia RBA Trim Mean CPI YY Q1 (consensus 2.2%, previous 2.2%)
- (2130 ET/ 0130 GMT) Australia CPI Index Number Q1 (previous 106.6)
Key Events Ahead
- No Significant Events
FX Recap
USD/CAD is up for the second consecutive session, looking to regain the 1.2300 handle. Stronger greenback and a knee-jerk in crude oil prices is helping with the upside. Wednesday’s calendar, important releases will be US Existing Home Sales and Housing Price Index, as well as the EIA weekly report on crude oil inventories. At the time of writing the pair is up up 0.48% at 1.2283. Next hurdle is at 1.2300 (psychological level) and then 1.2328 (high ). Supports are at 1.2180 (low ), 1.2100 (psychological level) and then 1.2087 (low ).
GBP/USD: There has been a lack of follow through from the bulls towards the 1.50 mark. GBP/USD currently trades at 1.4921 with a high of 1.4974 and a low of 1.4855. Cable rose more than 90 pips during the last hours amid a decline of the US dollar across the board and printed a fresh daily high at 1.4974. Despite rising against greenback, the pound fell versus European currencies during the American session. EUR/GBP is back around 0.7192 while GBP/CHF trades at 1.4252.
AUD/NZD: The aussie weakened during the Asian session after the release of RBA minutes. AUD/NZD is falling for the third day in a row. Price remained below 1.0100 throughout the day and bottomed on European hours at 1.0038, the lowest level since April 6th. The pair continues to move towards record lows and the parity level.
USD/MXN consolidating yesterday’s gains and holding at the strongests level in a month. Mexican peso among the worst performers, during the last five trading days. Near the end of US trading session stands around 15.465, virtually unchanged for the day. 15.500 area is a key resistance level to watch for. On the flip side supports are at 15.422, 15.350 and 15.264.
EUR/USD: Continuing concerns about Greek debt and mixed German ZEW data weighed on EUR/USD which bottomed out at 1.0659 during the European session. The pair managed a strong comeback during the American session but gains were capped by 1.0781. After seesawing in a 120-pip range throughout the day, the pair has reurned to opening levels, trading at 1.0738, virtually unchanged on the day. Immediate resistances are seen at 1.0781 (daily high), 1.0800 (psychological level) and 1.0821 (Apr 20 high). Supports could be found at 1.0698 (10-day SMA), 1.0659 (daily low) and 1.0645 (61.8% Fibo of 1.0520-1.0848).
The material has been provided by InstaForex Company – www.instaforex.com