Euro retreats towards 1.060 against USD

Friday, April 10, 2015

European equity markets climbed higher in early trade this morning as concerns regarding Greek debt issues slightly eased as yesterday Greece repaid its scheduled $450 mln instalment to the IMF. However, there are ongoing tensions regarding Greece’s economic stability as the Eurogroup stated that no significant progress has been made, while investors might remain cautious due to ongoing nervousness surrounding the Greek Easter holiday starting today. The euro plunged towards 1.06 against the USD this morning, retreating for fifth consecutive trading session.

EURUSD plunges towards 1.06

EURUSD Curncy (EUR-USD X-RATE)   2015-04-10 08-42-57

The USD index spiked above 99.0 this morning against a basket of currencies. Market participants will be watching for the release of the US Fed Budget details this evening as well as US import price index data for further clarification regarding the US economic conditions and prospects.  

USD index rallies above 99.0

DXY Curncy (DOLLAR INDEX SPOT)   2015-04-10 08-43-52

China’s CPI was reported at 1.4% y/y in March, unchanged from the previous month against analysts’ expectations of 1.3%. The Hang Seng index extended gains and rallied higher overnight adding 200 points (+0.75%) to retest 27,150. In Japan, the Nikkei index slid slightly lower (-0.15%) towards 19,900.

The sharp sell-off continues to dominate the oil market as crude oil prices extended declines with WTI front month futures retreating towards $50 per barrel this morning. Brent front month futures hovered around $56.50 per barrel, while the strengthening USD and the bearish crude oil fundamentals weigh heavily on market sentiment.

WTI Front month futures retreat towards $50/barrel

CLK5 Comdty (WTI CRUDE FUTURE  M 2015-04-10 08-44-40

  

Events for today:

 

0230

CN

Mar

CPI &PPI

0930

UK

Feb

Industrial Production

1500

UK

Mar

NIESR GDP Estimate

1500

US

Mar

Import Price Index

1900

US

Mar

Fed Budget

All times UK Local Time

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