Market Roundup
- Euro down to 1.0660 from 1.0751 as concerns over Greece rises.
- Japan PM Abe: Want to improve ties with China further based on principle of mutually beneficial strategic relationship.
- ZEW economist says German current conditions highest since July 2011; the effect of the Greek crisis is relatively limited now in the opinion of the participants.
- Germany Apr ZEW current conditions increases to 70.2 (consensus 56.0 ) vs pervious 55.1.
- Germany Apr ZEW economic sentiment decreases to 53.3 (consensus 55.3 ) vs pervious 54.8.
- Italy Government Deficit widens to 3.0 pct/GDP in 2014 from 2.9 pct in 2013, debt rises to 132.1 pct from 128.5 pct.
- France Government Deficit narrows to 4.0 pct/GDP in 2014 from 4.1 pct in 2013, debt rises to 95.0 pct from 92.3 pct.
- Greek Government Deficit narrows to 3.5 pct/GDP in 2014 from 12.3 pct in 2013, debt rises to 177.1 pct from 175.0 pct.
- Euro Zone Government Deficit narrows to 2.4 pct/GDP in 2014 from 2.9 pct in 2013, debt rises to 91.9 pct from 90.9 pct
Economic Data Ahead
- (0830 EDT/1230 GMT) Canada Wholesale Sales mm, consensus 0.0%, previous -3.1%
- (0855 EDT/1255 GMT) US Redbook mm, previous 0.2%
- (0855 EDT/1255 GMT) US Redbook yy, previous 1.1%
Key Events Ahead
- (1045 EDT/1445GMT) FedTrade Operation 30-year Ginnie Mae (max $925 mln).
- (1200 EDT/1600 GMT) Buba Dombret speech in Toronto.
- (1230 EDT/1630 GMT) ECB Nouy speech in Geneva.
- (1600 EDT/2000 GMT) Canada FinMin Oliver presents latest federal budget in Ottawa.
FX Recap
EUR/USD plunged deeper into the red in the European session and currently trades at 1.06811 levels. The euro is undermined by the uncertainty surrounding Greece. On the topside, immediate resistance is located at 1.07 levels, and then at 1.0748 levels. On the other hand, support is likely to be found at 1.0623 (April 16 Low) below which it could be dragged to 1.0570 (April 15 Low) levels. Option expiries at 1.0645 (542M), 1.0670-80 (725M), 1.0725-30 (430M), 1.0800-10 (922M).GBP/USD weakened on Tuesday and fell to 1.4855 levels before consolidating to 1.4884 levels, where it is currently trading. The pound is pressured by the upcoming UK general elections. The pair’s upward move is likely to be capped by 1.4839 (hourly 100-MA), and a break above could see it rising to 1.4839 (hourly 50-MA). On the downside, support is seen at 1.4865 and then at 1.4808 levels. Option expiries at 1.4830-35 (350M).AUD/USD dropped to 0.7681 during late Asian session, its lowest since April 16 and later consolidated at 0.7723 levels. The pair has resistance at 0.7825 levels (Apr 16 high), and a break above could extend its gains to 0.7850 levels. On the flipside, support is located at 0.7663 (Apr 15 low) and then at 0.7567 levels. Option expiries at 0.7700 (469M), 0.7750 (290M).USD/JPY met fresh selling interest at session high of 119.78 levels. It currently trades at 119.41 levels. The downside is being capped by the hourly 200-MA at 119.60 levels, and a break below could see the pair dropping to 119.10 (hourly 100-MA). On the reverse side, a break above 119.91 (50-DMA), would target 120.50-120.70. Option expiries at 118.00 (504M), 118.50 (216M), 118.70 (200M), 121.00 (500M).USD/CHF was unable to hold above the 0.9600 mark, which it breached temporarily. It currently trades at 0.9585 levels, having posted day’s high at 0.9623 levels and low at 0.9551 levels so far. To the topside, resistance is seen at 0.9600 levels and then at 0.9617 levels. On the other hand, support is expected to be found at 0.9550 levels and a break below could extend its losses to 0.9500 levels.
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