The London session remained on the quiet side as the holiday lull continued to some extent across the pond. Risk was seemingly back on as the optimism from much better than expected earnings out of a major US investment bank carried on. European bourses have added +1.4% as they play catch-up after taking yesterday off.

Gold managed to extend gains, however, and continues to buck the ''risk-taking'' trend. The precious metal was up modestly near the 895/896 zone and a close back above 900 should see gains extend over the next few days.

EUR/USD was lower again after a pummeling in the prior session. The pair sank -25 pips to 1.3270/80 and should remain heavy while below the 200hr which now sits at 1.3310 here. The yen crosses were little changed with USD/JPY adding about 10 points to 99.80 while EUR/JPY shed a modest -12 pips into the 132.50/60 zone.

The British pound was better bid in London trading and the clear standout. GBP/USD jumped 80 pips into 1.4900/10 while EUR/GBP sank -65 pips to 0.8900/10. Cable now has the 1.4960 highs from last week within striking distance and above there should see a good barrier by 1.50 next.

The NY session now gives us some economic data to chew on. US retail sales and producer prices are the highlights. The market is looking for retail sales to increase by 0.3% in March after a -0.1% dip prior. Meanwhile, producer prices are forecast to come in flat for the same month after a modest 0.1% increase previously. We would look for USD strength on weaker than expected retail sales coupled with higher than expected producer prices, as the risk trades would likely come off on such a scenario.

Upcoming Economic Data Releases (NY Session) prior expected

  • 4/14 12:30 GMT US Producer Price Index (MoM) MAR 0.10% 0.00%

  • 4/14 12:30 GMT US PPI Ex Food & Energy (MoM) MAR 0.20% 0.10%

  • 4/14 12:30 GMT US Advance Retail Sales MAR -0.10% 0.40%

  • 4/14 12:30 GMT US Retail Sales Less Autos MAR 0.70% 0.10%

  • 4/14 14:00 GMT US Business Inventories FEB -1.10% -1.20%

  • 4/14 14:30 GMT US Fed's Evans Speaks on Risk Management

  • 4/14 17:30 GMT US Bernanke Speaks in Atlanta on Financial Crisis

  • 4/14 20:45 GMT US Fed's Stern Speaks on Risk Management

  • 4/14 21:00 GMT US ABC Consumer Confidence 12-Apr -50 - -