Global Markets:

  • Japan Retail Sales (y/y): 11.0%, Expected: 11.0%, Previous: 3.6%
  • Japan Large Retailer’s Sales (MAR): 16.1%, Previous: 1.3%
  • IMF forecasts Japan’s economy growing 1.4% in 2014, China to grow at 7.5% in 2014
  • Japan Finance Minister Aso: Japan monetary policy aimed at ending deflation, not FX. Weaker Yen is a side-effect of monetary policy.
  • Aso: Likely can’t can’t avoid corporate tax cut to keep competitiveness. Wants tax panels to carefully consider corporate tax.
  • China sets Yuan reference rate at 6.1565 against the USD
  • Asian stock markets are mostly in the red this morning
  • The Nikkei and Shanghai Composite both declined 1.20 % while the Hang Seng lost 0.40 %
  • Australia’s ASX is up 0.10 % on the day
  • Gold trading at $1304 (+0.30 %), benefiting from increased geopolitical tensions
  • Silver at $19.73 (+0.05 %), Crude Oil at $101.01 (+0.40 %)
  • US 10 yer yield at 2.68

 FX Flows/Orders:

  • Dealers saw solid selling from leveraged funds in GBP/AUD and EUR/AUD
  • AUD/USD – cross flows were supportive, but gains were again capped by offers ahead of the 0.93 level. Above the big figure, stops at 0.9310 and through 0.9330 + offers lined up pre-0.9350.
  • EUR/USD – German CPI data tomorrow should help the pair break out of its small trading range. Dealers see bids towards 1.3780, while stops are large through 1.3775. To the topside, decent selling interest remains at 1.3850 and in better size ahead of 1.3880.
  • USD/CAD – Banks see corporate bids at 1.1020 & demand from speculators at 1.10. To the topside, stops through 1.1060 and larger at 1.1080.

 Upcoming Events:

  • 15:00 GMT – US Pending Home Sales (1.0 %)