General Commentary
Last Week’s Currency Trading Review:
The Euro: The EUR/USD closed the week at 1.3836 gaining steadily all week after traders listened to more rhetoric from ECB officials and Draghi. There were virtually no expectations of any shifts by the U.S Fed at their policy meeting on Tuesday and Wednesday next week.
The Yen: The USD/JPY rounded out a busy week on a weak note as traders moved back to risk off mode and to the safety of the Japanese Yen. Tensions in Ukraine continue to clim as Moscow tries to diffuse the situation. Japanese consumer inflation rose for a 10th straight month in March as higher energy costs helped push prices up. Data showed price rose 1.3 percent year on year in March, the same rate since December.
The AUD: The AUD dipped this week as troubles brewing in China weighed on the currency. The Aussie ended the week at 0.9283 after touching a weekly of 0.9377 before Chinese data was released. The calendar has been kind to Aussie workers this month, with the Easter and Anzac Day long weekend falling within a 10 day period.
The Forex Trading Week Preview:
The States:
Monday: Pending Home Sales (f/c 1% vs -0.5%), Tuesday, CB Consumer Confidence (82.9 vs 82.3). Wednesday, ADP Non Farm employment Change (203k vs 191k), Advance GDP (1.2% vs 2.6%), FOMC Statement. Thursday, Fed Yellen Speaks and Unemployment Claims (317k vs 329k). Friday, Non Farm Employment (216k vs 192k), Unemployment (6.6% vs 6.7%).
The EZ: Tuesday, German Prelim CPI (-0.1% vs 0.3%). Wednesday, German Retail Sales (-0.6% vs 1.3%), CPI Flash Estimates (0.8% vs 0.5%). Friday, Spanish Manufacturing PMI (53.2 vs 52.8), Unemployment Rate (11.9% vs 11.9%)
The BOJ: Monday, Retail Sales (10.9% vs 3.6%). Wednesday, Prelim Industrial Productions (0.6% vs -2.3%), Average Cash Earnings (0.2% vs -0.1%), Monetary Policy Statement, BOJ Outlook Report, BOJ Press Conference. Friday, Household Spending.
