Fundamental Headlines
• USDJPY – Japanese consumer confidence rebounded from a five year low of 36.1 to 36.7 in March. The mild improvement is based on improving labor conditions and the economy refraining from sinking further. Meanwhile, department store sales fell 1.2%, with a 0.7% in Tokyo. Sales declined in sundries, clothing and furniture. Inflation has eroded consumer purchasing power, and is becoming a concern for the BoJ, making any future rate cuts unlikely. For more news and resources, visit our Japanese Yen Currency Room.
• AUDUSD – Australian exports prices jumped 3.5% in the first quarter, due to surging food prices, led by a 17.8% increase in animal and vegetable oils. Import prices also rose 2.7% from 0.5% the quarter prior, led by an 11% increase in fuel costs. Inflation is expected to remain a concern for policy makers, with the RBA expected to maintain interest rates at the 12 year high of 7.25% For more news and resources, visit our Australian Dollar Currency Room.
• EURUSD – German producer prices rose to 3.8% -its fastest pace in 15 years -on higher energy costs. As companies try and pass these additional costs onto consumers, inflation will continue to be a major concern for the ECB. Committee members have already started hinting at ta possible rate hike. The weakening economy regional and globally make will make it difficult for the MPC to take such a measure. Discuss the topic and your trade ideas in the EUR/USD Forum.
• Surge in Natural Gas Price Stoked By New Global Trade (link) – Wall Street Journal
• Economic Split Seen In Corporate Earnings (link) – Wall Street Journal
• BoE Readies Bailout Plan for U.K. Banks (link) – Wall Street Journal
• Rice Traders Hit By Panic As Prices Surge (link) – Financial Times
• U.S. Ten Year Notes Headed For Biggest Weekly Drop in Four Years (link) – Bloomberg
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