Fundamental Analysis April 14

[fxnet]

EUR/USD moved by 11 focuses unable to move over the 1.39 level. The EUR is flat to yesterday's nearby, having neglected to support a short rally over 1.3900. A few outskirts yields have dropped to new lows—note that both Italian and Spanish 10‐years are currently at 3.2%. German CPI came in obviously with feature tumbling from 1.2% in February to 1.0%y/y in March; the delicateness was normal yet denote a three‐year low in German feature inflation and will weigh on Eurozone inflation, which thusly will weigh on the ECB. Today a viewpoint update for Portugal (Fitch to positive) was offset by a standpoint downsize to Finland (S&p to negative on development concerns). Next week's center will be the arrival of Eurozone CPI, anticipated that will raise 0.5%y

GBP/USD gave up 58 points to trade at 1.6726 as the US dollar gained momentum. . The GBP is soft, down 0.2% since yesterday’s NA close failing to sustain brief gains above 1.68. Construction output was soft, down 2.8%m/m and up 2.8%y/y. Next week’s focus will be the release of CPI, expected to fall to 1.6% on headline and core as well as employment.

AUD/USD eased by 9 points as traders booked profits after last week’s strong showing and continued worries over the Chinese economy with GDP due later in the week and the holiday season many traders are booking profits and moving to the sidelines. The Aussie is trading at 0.9390 well above its 2014 average range.

USD/JPY eased by 7 points as traders moved to the safety of the Japanese currency, pushing the pair to trade at 101.56. Asian share markets gave up more ground in early trade this morning after a dismal week on Wall Street, helping underpin the safe-haven yen. The low-yielding yen benefited from the heightened risk aversion. The dollar was down about 0.1 percent in early trading at 101.56 yen, after touching a 3-1/2 week low of 101.32 yen on Friday, a far cry from a 2-1/2 month high of 104.13 yen set on April 4.

Gold moved between gains and losses today, to trade at 1321.70 its highest level in weeks. Risk appetite was also curbed by tensions in Ukraine, where pro-Moscow protesters seized arms in one city and declared a separatist republic in another, in moves Kiev described as part of a Russian-orchestrated plan to justify an invasion to dismember the country. Gold, seen as an alternative investment, usually benefits from economic and geopolitical uncertainties.