EUROPEAN session review: ECB and BoE left rates unchanged

Data released: 

06:00 GMT Germany Industrial Production n.s.a. w.d.a. (Mar) y/y 3.0% _ 4.7% 

06:00 GMT Germany Industrial Production s.a. (Mar) m/m -0.5% 0.2% 0.6% 

07:00 GMT UK Halifax House Prices (3m/YoY) (Mar) 8.5% 9.1% 8.7% 

07:00 GMT UK Halifax House Prices (MoM) (Mar) -0.2% 0.9% -1.2% 

07:15 GMT Switzerland Consumer Price Index (Apr) y/y 0.0% 0.1% 0.0% 

07:15 GMT Switzerland Consumer Price Index (Apr) m/m 0.1% 0.1% 0.4% 

11:00 GMT UK BoE Interest Rate Decision 0.5% 0.5% 0.5% 

11:00 GMT UK BoE Asset Purchase Facility (May) £375B £375B £375B 

11:45 GMT EMU ECB Interest Rate Decision (May 8) 0.25% 0.25% 0.25% 

As it was epected ECB and BoE left rates unchanged. Recent consensus surveys have suggested that rate hike expectations are creeping forward although analysts are still favouring Q2 2015 for the timing of the first move. 

As for ECB, ECB to refrain from additional easing measures today. 

EURO 

The ECB kept its benchmark interest rate at a record-low 0.25%, according to economists. Draghi last month pledged to take additional policy action if a stronger currency keeps inflation depressed. 

EUR/USD currently holds at $1.3950. Above the initial resistance remains near 2014 highs on $1.3967, extending to $1.4000. Below $1.3900 support comes at $1.3810 (Friday’s lows), extending to $1.3790/85. 

POUND 

The pound consolidates near multi-year highs following a limited downward correction ahead of the Bank of England monetary policy decision. 

Analysts believe that another unchanged BoE announcement could turn into a non-event for the pound. 

GBP/USD holds in very narrow range below $1.7000. Further resistance comes at $1.7040 (Aug 2’2009 high). Below $1.6820 support comes at $1.6780 with a break under widens losses to $1.6700 and around Apr 15 lows on $1.6660. 

YEN 

The yen consolidates within the range. 

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

DATA AHEAD 

ECB Monetary policy statement and press conference is expected at 12:30 GMT.

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