The US Dollar is looking toward comments from Fed Chairman Ben Bernanke and earnings from cycle-sensitive Alcoa Inc for direction cues.
Talking Points
Bernanke Commentary, Alcoa Inc Earnings in Focus to Start Trading Week
German Industrial Production Data Unlikely to Spark Strong Euro Volatility
Japanese Yen Selling Continues as Markets Digest New BOJ Stimulus Efforts
The spotlight is on Federal Reserve Chairman Ben Bernanke to start the trading week. The central bank chief will give the keynote speech at the Atlanta Fed’s Financial Markets Conference, discussing financial stability. The address itself is likely to play second fiddle to the Q&A session that is to follow, with traders looking to any remarks referencing last week’s dismal US jobs report in the context of monetary policy to set the tone for FOMC minutes release on tap later in the week. A strongly dovish lean may weigh on the US Dollar. On the corporate earnings front, Alcoa Inc is due to report results, which may carry implications for sentiment trends.
German Industrial Production figures headline a quiet economic calendar in European trading hours. Output is expected to fall 0.9 percent in the year to February, marking the eighth consecutive month in negative territory. The result seems unlikely to stir much of a response from the Euro and financial markets at large however considering its limited implications for ECB monetary policy after last week’s status-quo interest rate decision.
The Japanese Yen sank in overnight trade, down as much as 1.5 percent against its leading counterparts, in what appeared to be continuation following last week’s unveiling of an aggressive new stimulus effort from the Bank of Japan. The benchmark Nikkei 225 stock index tested the highest levels since August 2008, likewise seeming to be responding to the prospect of added monetary support for economic growth.
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Asia Session:
GMT
CCY
EVENT
ACT
EXP
PREV
23:01
GBP
Lloyds Employment Confidence (MAR)
-45
–
-44
23:30
AUD
AiG Performance of Construction Index (MAR)
39
–
45.6
23:50
JPY
Current Account Total (¥) (FEB)
457.5B
637.4B
-364.8B
23:50
JPY
Adjusted Current Account Total (¥) (FEB)
-0.1B
-62.0B
364.6B
23:50
JPY
Trade Balance – BOP Basis (¥) (FEB)
-667.0B
-660.1B
-1479.3B
23:50
JPY
Current Account Balance (YoY) (FEB)
-47.0%
-59.1%
-19.9%
1:30
AUD
ANZ Job Advertisements (MoM) (MAR)
-1.5%
–
3.0%
4:30
JPY
Bankruptcies (YoY) (MAR)
-20.0%
–
-11.8%
5:00
JPY
Eco Watchers Survey: Curren (MAR)t
57.3
–
53.2
5:00
JPY
Eco Watchers Survey: Outlook (MAR)
57.5
–
57.7
6:30
AUD
Foreign Reserves (A$) (MAR)
48.7B
–
43.7B
Euro Session:
GMT
CCY
EVENT
EXP/ACT
PREV
IMPACT
7:15
CHF
Industrial Production (YoY) (4Q)
1.7% (A)
2.5%
Low
8:30
EUR
Euro-Zone Sentix Investor Confidence (APR)
-17.3 (A)
-10.6
Low
10:00
EUR
German Industrial Production (MoM) (FEB)
0.3%
0.0%
Medium
10:00
EUR
German Industrial Production (YoY) (FEB)
-0.9%
-1.3%
Medium
Critical Levels:
CCY
SUPPORT
RESISTANCE
EURUSD
1.2914
1.3053
GBPUSD
1.5237
1.5400
— Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak
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Source: Daily fx