Risk was pared as Switzerland's largest bank announced it is cutting about 7500 jobs, in a sign that the financial market turmoil is still far from over. European bourses were about flat on average while US shares were trading just a touch in the red moments ago. Gold recovered about $4 towards 895/896 and should once again flirt with 900 resistance in NY now.

EUR/USD traded sideways for the better part of the session around 1.3230 but has been beaten down just recently – to a 1.3182 low – as the ECB's Weber said that ''non-standard'' measures will be announced at the May meeting. As quantitative easing becomes more and more of a reality, we expect the downside pressure on EUR to intensify.

The pound was better bid as news of a seemingly stabilizing property market in the UK carried on through the session. GBP/USD shot up more than 130 pips to just below 1.50 resistance while EUR/GBP continued to grind lower and slipped another -75 pips into the 0.8820/30 area.
A daily close above 1.50 in cable would be short-term constructive for the pair while the growing possibility of quantitative easing in the eurozone should keep EUR/GBP under pressure as well.

The NY session now is packed with US economic data and consumer prices and the NY Empire manufacturing index are the highlights. The market expects headline CPI to increase by +0.1% in March while the core number is forecast to rise at the same pace. NY Empire is expected to improve to -35 in April from -38 prior and this report will be key in assessing what the ISM number will look like. Also look for the Fed's Beige Book in the NY afternoon, where rosier than expected headlines could see the JPY crosses squeeze higher.

Upcoming Economic Data Releases (NY Session) prior expected

  • 4/15 12:30 GMT CA New Motor Vehicle Sales MoM FEB 5.50% -2.00%

  • 4/15 12:30 GMT US Consumer Price Index (MoM) MAR 0.40% 0.10%

  • 4/15 12:30 GMT US CPI Ex Food & Energy (MoM) MAR 0.20% 0.10%

  • 4/15 12:30 GMT US Empire Manufacturing APR -38.23 -35

  • 4/15 13:00 GMT US Net Long-term TIC Flows FEB -$43.0B $27.5B

  • 4/15 13:15 GMT US Industrial Production MAR -1.40% -0.90%

  • 4/15 13:15 GMT US Capacity Utilization MAR 70.90% 69.60%

  • 4/15 14:30 GMT US DOE U.S. Crude Oil Inventories 10-Apr 1645K - -

  • 4/15 14:30 GMT US DOE U.S. Gasoline Inventories 10-Apr 656K - -

  • 4/15 17:00 GMT US NAHB Housing Market Index APR 9 10

  • 4/15 18:00 GMT US Fed Releases Beige Book Economic Report