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Weekly Wrap UP: April 06 – 10

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The greenback rose against all of its G10 peers during the week just past since positive news for the US economy came out. The only exception was the Australian dollar.

The FOMC minutes, announced on Wednesday, showed three different opinions about the right timing to start increasing interest rates on a smooth pace. The initial plans for June are started to be doubted and thoughts about later in the year, even the next year, are rising.

The shared currency was the major loser against the buck since the Greek problem continuous to worry the euro traders. The EURUSD pair gained 1.5% from Monday until Friday.

The Australian dollar remained higher against the US dollar, continuing its gains after the Reserve Bank of Australia left interest rates on hold for the second month in a row at 2.25%. The AUDUSD is gaining 1.51% at the last day of the week.

The Yen fell 1.27% versus the dollar from Monday. The USDJPY pair gained 1.19% the first two days but lost some of its gains, 0.12%, right after the publication of the Bank of Japan policy statement, and the decision of the bank to keep its bond-buying policy unchanged. The central bank, optimistic of the outlook of the economy, maintained its policy to increase the cash money out at an annual pace of $670 billion through the program.

Recap of this week’s E.U. economic events:

• Bank of England announced its decision to keep its key interest rate unchanged at 0.5% as expected. It has been at this level since March 2009. The central bank also announced that will keep its bond-purchase target, by continuing to inject £375B into the economy through the QE program.
• In UK, the services sector, a large part of the total GDP, increased in May; above 56.0 since mid-2013
• In UK, Trade Balance closed at a 5-Month high deficit ahead of the next month elections
• Eurozone Markit Services and Composite PMIs decreased slightly to 54.2 and 54.3 from 54.3 and 51.4 respectively; Prints above 50.0 shows expansion of the economy
• Eurozone’s PPI, the change in prices received my domestic producers of commodities, improved to -2.8% after four consecutive months of decline
• Eurozone’s Retail Sales in March accelerated at a slower pace than in February, by 3.0% as expected but on the macro view the indicator is steadily increasing since end-2013
• In Germany Service sector activity expanded at a slightly faster than expected pace for March
• German Factory Orders improved to -0.9%, but far lower from the expectation to accelerate by 1.5%
• In Germany, Industrial Production n.s.a. yoy for February, decelerated by -0.3% versus January’s print of 0.9%
• Germany’s Trade Balance edged higher at €19.7B from €19.6B versus the expectations of €20.0B

Recap of this week’s U.S. economic events:

• Markit Services and Composite PMIs for March, came out in the week, both edged higher
• ISM Non-Manufacturing PMI came in line with the expectation, slightly lower than in February
• The Consumer Credit Change has increased in February to $15.52B from $10.80B before
• Economic Optimism for May soars, as the prints coming out the latest months are above 50 for first time since mid-2012
• Job Openings in February record the fifth consecutive month of increase, surpassed 5.000M for first time since 2001
• Wholesale inventories for March slightly slowed down to 0.3% but above expectations of 0.2%
• Both Initial and Jobless Claims came lower than expected, a positive sign for the labor sector

Recap of this week’s other economic events:

• Ivey Purchasing Managers Index in March showing the business conditions in Canada inclined to 56.0 from 50.8 before
• Reserve Bank of Australia keeps the interest rates on hold at a record low of 2.25%
• Bank of Japan is optimistic for the bond-buying program started two years before and decided to maintain its policy to increase the cash money out at an annual pace of $670 billion through the program
• Swiss figures came out showed that the country slips more in deflation, since the yoy CPI continuous to decline steadily the last six months reaching -0.9% from 0% in last October
• Switzerland’s Unemployment Rate s.a. in March came out in line with the previous month
• China yoy CPI for March remained the same as before at 1.4%

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