Today’s Important Indicators

A volatile Wednesday for Europe and Canada on inflationary and economic activity data releases.

In Europe, the German Core CPI figures are expected to drop to 1% on Wednesday meanwhile Canada releases its monthly GDP data.

BoC reported a flat economy in February and April’s expectations stand at 0.3%. Actual data could have some impact in the markets as volatility has proven to be high during their release.

Investors may keep an eye on the numbers for possible set-ups.

Today’s Forecast for Important Trading Indicators

Market Movers

• The Kiwi moves 0.64% higher against the Greenback on Tuesday’s session, trading above March’s high of 0.70900. NZDUSD further gains amid rumours on divergence between RBNZ’s monetary policy and US Fed in addition to increased political risk in the Euro Zone that is affecting all commodity pairs.

• Crude oil dips 0.48% on fears of continuous supply surplus and the classic “sell the fact” reaction. The Black Gold fell on Tuesday amid Libya’s restored output to 800.000 bpd. Market participants called to decipher fundamentals with a sharp eye on the inventory levels.
• Dollar-Yen slides on disappointing US data and latest developments on European geopolitical fears. USDJPY closed 0.46% lower on Tuesday, seeing the Yen rising against the major basket of pairs as concerns on British Elections polls and Greek Bailout package increase. Yen’s strength mainly supported by a 40-Year labor demand.
• USDJPY in consolidation despite North Korea missile test while on techs, it tops at the 50 EMA. Yen traded in a range due to closed markets as well as the fact that investors are becoming familiar with North Korea’s test. The pair settles around the 111.000 level, remaining on a bearish trend, a breakout of which was confirmed this morning. The pair steady at 110.825 support.

• EURUSD continues its recovery on ECB rumours and poor US inflation after bouncing on low of 1.11087. The Euro-Dollar gained all daily losses on ECB’s report to end the QE program along with falling US inflation that decreases the chances of a rate hike in June. Investors patiently wait for Friday’s NFP.
• The Swiss Franc gained 0.36% over the Dollar on Tuesday’s session backed on timid geopolitical developments. USDCHF retests the 0.9812 resistance supporting the bearish trend as dollar sentiment failed to hold amid negative US data. Investors chose risk aversion once again.
• Sterling in further decline during opening, owing to narrowing Con-Lab gap of only 6% points. The British Pound is under pressure on weighing politics, as opinion polls keep tightening. GBPUSD on a poor attempt to revoke losses, currently trading 0.53% lower at 1.27934.
• USDCAD moves higher on Tuesday open amid Oil decline and goes into consolidation after poor US inflation figures. Loonie is on its highest high since the 24th, reaching 1.35053 backed on softer Crude Oil prices during Tuesday’s session, however remains in range after US data release. The pair currently trades below its 50 MA.
• Asian Indices traded higher on Tuesday’s session except Nikkei which closed a tiny 0.02% lower.

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