EUROPEAN session review: Dollar fell versus the european currencies

Data released: 

08:00 GMT EMU Current Account n.s.a (Feb) €13.9B _ €7.0B 

08:00 GMT EMU Current Account s.a (Feb) €21.9B _ €25.4B 

08:30 GMT UK Claimant Count Change (Mar) -30.4K -30.0K -37.0K 

08:30 GMT UK Average Earnings excluding Bonus (3Mo/Yr) (Feb) 1.4% 1.7% 1.2% 

08:30 GMT UK Average Earnings including Bonus (3Mo/Yr) (Feb) 1.7% 1.8% 1.4% 

08:30 GMT UK Claimant Count Rate (Mar) 3.4% _ 3.5% 

08:30 GMT UK ILO Unemployment Rate (3M) (Feb) 6.9% 7.1% 7.1% 

09:00 GMT EMU Consumer Price Index - Core (YoY) (Mar) 0.7% 0.8% 1.0% 

09:00 GMT EMU Consumer Price Index (MoM) (Mar) 0.9% 1.0% 0.3% 

09:00 GMT EMU Consumer Price Index (YoY) (Mar) 0.5% 0.5% 0.7% 

09:00 GMT Switzerland ZEW Survey - Expectations (Apr) 7 23 19 

The dollar fell versus the european currencies and rose against the yen. Worls watching Ukrainian situation development. NATO Sec Gen Rasmussen said NATO has taken further measures on Ukraine crisis. 

EURO 

Consumer prices in the euro bloc rose at an annual pace of 0.5% during March, matching expectations, while the Core reading came in at 0.7% YoY, a tad lower than the 0.8% forecasted. 

EUR/USD trades around $1.3830. Minor support comes at $1.3740 (Apr 8 lows), extending to $1.3670 (Apr 4 lows). Initial resistance comes at $1.3830 (yesterda’s highs), then - at $1.3900 with a break above targets $1.3965 (Mar 13 highs). 

POUND 

The data didn’t disappoint – February Unemployment ratу came out at 6.9 vs 7.2 expected, the Claimant Count change was above expectations at -30.4K vs 30.2K, and the Average Earnings Index a little bit worse at 1.7% vs 1.8% forecast. 

GBP/USD tested the rasistcance at $1.6820. Braking of this level will lead to speed up the pound rising. Support is near Tuesday’s lows on $1.6660 with a break under widens losses to $1.6600 (trend support line from Nov 12’2013). 

YEN 

The yen has weakened modestly reflecting relief amongst investors that the reported economic slowdown in China in Q1 was not as sharp as some had feared. Still it was reported that real GDP growth slowed to an annual rate of 7.4%Y/Y in Q1 following an expansion of 7.7%Y/Y in Q4 2013, which was the slowest rate of growth since the Q3 2013. The pace of growth is within the government’s comfort zone having set an annual growth target of around 7.5% for 2014, and is unlikely to prompt material economic stimulus to support growth in the near-term. 

USD/JPY trades at Y102.20. Closest resistance comes at Y103.40 and around Y104.00. Stronger one remains at Y104.30/80. Initial support comes at Y101.30 (Apr 10 lows). Below support comes at Y100.70 (Feb 7 lows). 

DATA AHEAD 

At 13:15 GMT Mar Industrial Production may show 0.5% gain after 0.6%.
At 14:00 GMT BoC announces its Interest Rate Decision with no change expected (1%).
At 14:30 GMT EIA reports Crude Oil Stocks change for the Apr 11 week.
At 15:30 GMT and 16:15 GMT Fed's Lockhart and Fed's Yellen speak, followed by Fed's Beige Book at 18:00 GMT.

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