German, Eurozone & US manufacturing data

Good Morning,

- Sterling spike, hitting its highest in over a month early on Thursday, as Bank of England's last policy meeting were taken as less than dovish by a crowded market. Euro also trade lower so far this morning as Greece continues to cast its shadow…

- ECB's Coeure says Eurozone recovery remains insufficient, but a recovery is clearly there. QE, oil price drop, and weaker euro boosting European economy.

- Income expectations in Germany at highest level since reunification. Developments in the consumer mood in Germany have not been uniform in April. The consumer climate has improved, but not as strongly as in recent months. Following a value of 10.0 points in April 2015, the overall indicator is forecasting 10.1 points for May. Income expectations continue to rise, while economic expectations and willingness to buy declined slightly. Low inflation rates and the prospect of considerable increases in income have caused income expectations to further improve.

- The latest flash France PMI data signaled an easing in the rate of expansion of private sector output to near - stagnation in April.

- Bank of America on EUR/USD: BofA notes that while the 1.0500-1.1000 range is still intact, its correction is turning increasingly in a 'Triangular' pattern. A Triangular Correction, according to BofA, is a range defined by two contracting trend lines. "This is one of our favorite patterns and should provide an excellent opportunity to go short for a move toward 1.0000 once the pattern completes," BofA argues. "For now, stay patient. Gains should not exceed the 55d at 1.0967, while a break of 1.1053 points to a larger correction than anticipated," BofA advises.

- Global Government bonds yields spike, as UK gilts took a hammering when minutes of the Bank of England's last policy meeting were taken as less than dovish by a crowded market. Yields on British 10-year paper had jumped almost 15 basis points on Wednesday in the largest one-day rise since August 2013.

- BOJ's Kuroda says policy board they aren't discussing QQE exit yet. But BOJ staff are studying technical details of exit. Preparation understandable, not aiming to get results by surprising markets, takes time for oil fall to have positive effect on CPI. Inflation will pick up in H2 FY 2015, timing of reaching 2% could delay slightly into FY 2016.

- National Australia Bank says there is nothing to suggest that the Australian economy is transitioning away from the "patchwork economy of recent years", after business confidence and conditions fell in the first quarter of the year. According to NAB's quarterly business survey, confidence declined even further below the long-run average in the first quarter of 2015, with the confidence index falling 2 points to ink a result of zero. A lower Australian dollar, cheaper oil prices, and the Reserve Bank’s rate cut in February seemingly did little to boost confidence in the first quarter of the year, NAB said.

- HSBC Flash China Manufacturing PMI edges down to one-year low, at 49.2 in April (49.6 in March) .

- New Zealand dollar took a hit after RBNZ Assistant Governor John McDermott said rate cuts could be considered if domestic demand and inflationary pressures were to weaken.

- Oil futures settled lower last night after a U.S. government report showed crude supplies rose for a 15th week in a row, but domestic output slipped and gasoline inventories fell more than expected.

- Watch today: German, Eurozone & US manufacturing data.

Have a nice Day!