NZD rises following strong trade data; traders await US GDP figures

<p>The FX markets have seen minor price adjustments. Equities are trading under pressure following a warning to Russia of further sanctions from President Obama against […]</p>

The FX markets have seen minor price adjustments. Equities are trading under pressure following a warning to Russia of further sanctions from President Obama against further aggression as the Federal Reserve’s annual banking stress tests have revealed concerns for some of Wall Street’s finest.

The equity markets in Asia show positives as rumours circulated that a reserve requirement ratio cut was imminent to support growth. BoJ headlines suggested further stimulus measures could be implemented as early as May to cushion the blow from next month’s sale tax hike. The NZD grabbed the yellow jersey from the Asian session following very strong trade data as the RBNZ’s Spencer suggested that exporters had become accustomed to the strong NZD whilst also admitting that the Christchurch rebuilding project had increased inflation risks.

The UK has once again seen further evidence of a strong domestic economy following the release of retail sales data that in volume terms shows core sales rising 4.2% year on year.

The US data calendar will bring us the GDP reading as the consensus looks for an increase from 2.4% to 2.7% as pending homes sales are expected to increase of 0.2%.

 

EUR/USD

Supports 1.3740-1.3700-1.3670 | Resistance 1.3800-1.3830-1.3880

 

USD/JPY

Supports 101.60-101.20-100.85 | Resistance 102.80-103.05-103.80

 



GBP/USD

Supports 1.6530-1.6500-1.6440 | Resistance 1.6650-1.6720-1.6795

 

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.