ASIA session review: Russia is in focus after more sanctions

Data released: 

06:00 GMT Germany Gfk Consumer Confidence Survey (May) 8.5 8.5 8.5 

08:00 GMT EMU M3 Money Supply (3m) (Mar) 1.2% _ 1.2% 

08:00 GMT EMU M3 Money Supply (YoY) (Mar) 1.1% 1.4% 1.3% 

08:00 GMT EMU Private loans (YoY) (Mar) -2.2% -2.1% -2.2% 

08:30 GMT UK Gross Domestic Product (YoY) (Q1) Preliminar 3.1% 3.2% 2.7% 

08:30 GMT UK Gross Domestic Product (QoQ) (Q1) Preliminar 0.8% 0.9% 0.7% 

08:30 GMT UK Index of Services (3M/3M) (Feb) 0.9% 0.9% 0.9% 

09:00 GMT EMU Economic Sentiment Indicator (Apr) 102.0 103.0 102.4 

09:00 GMT EMU Business Climate (Apr) 0.27 0.42 0.39 

09:00 GMT EMU Consumer Confidence (Apr) -8.6 -8.7 -9.3 

Markets are quite volatile today after the U.S. yesterday named seven individuals, including Igor Sechin, chief executive officer of oil giant OAO Rosneft, and 17 companies linked to President Vladimir Putin’s inner circle such as InvestCapitalBank and Volga Group. The European Union added 15 individuals to its sanctions list, though their identities weren’t immediately released.

The Federal Reserve will probably announce a fourth straight stimulus cut at the conclusion of a two-day meeting tomorrow, economists say.

EURO

The euro weakened after softer EMU releases.

EMU’s M3 Money Supply expanded below estimates at an annual pace of 1.1% during March vs. 1.4% forecasted and February’s 1.3%. Private Loans followed suit, contracting 2.2% in a year to March, missing forecasts for a 2.1% contraction. 

Previous releases showed the German Consumer Confidence gauged by the Gfk Survey matching estimates at 8.5 for the month of May. 

EUR/USD is dragging down and currently holding at $1.3866. Initial resistance comes at $1.3900 with a break above targets $1.3965 (Mar 13 high). Below $1.3800 minor support comes at $1.3740 (Apr 8 lows), extending to $1.3670 (Apr 4 lows).

POUND

GBP/USD fell as low as $1.6790 after it posted $1.6841 high right before the release of the GDP numbers. The Q1 GDP release confirmed the British economy is growing slower than expected at 0.8% q/q, and 3.1% y/y pace vs 0.9% q/q, and 3.2% y/y. 

GBP/USD fell as low as $1.6790 after it posted $1.6841 high. Below $1.6800/$1.6780 support comes at $1.6700 and around last Tuesday’s lows on $1.6660 with a break under widens losses to $1.6640 (trend support line from Nov 12’2013). Resistance comes at $1.6880 (Nov 15’2009 high). 

YEN

The yen fell versus the dollar.

USD/JPY recovered to Y102.66. Initial resisatance is around Y102.70. Further resistance comes at Y103.40 and around Y104.00. Stronger one remains at Y104.30/80. Below Y102.00 support comes at Y101.30 (Apr 10 lows) and Y100.70 (Feb 7 lows).

DATA AHEAD

At 14:00 GMT US Apr Consumer Confidence is due to come with 83.0 expected after 82.3 earlier.
At 22:45 GMT New Zealand releases Mar Building Permits.

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