The Flash Manufacturing PMI and Flash Services PMI for France, Germany, and Eurozone all came in lower than expected for the month of April. Meanwhile, Spain’s Jobless Rate edged higher to 23.8 percent in April, according to the latest labor Force Survey of the Spanish National Statistics Institute.
In the United Kingdom, the Office for National Statistics reported that Retail Sales surprisingly slumped 0.5 percent, after a revised-lower reading for February of 0.6 percent. Public Sector Net Borrowing was close to expectations at GBP6.7 billion, with the previous reading revised to GBP4.8 billion from GBP6.2 billion.
In the United States, Jobless Claims jumped to 295,000, higher by 7,000 than the median forecast and just 1,000 more than the prior week’s claims. New Home Sales was much lower (a four-month low) at 481,000 in March, registering below the 500,000 mark for the sixth time out of the last 7 months. Durable Goods Orders jumped 4.0 percent due demand for aircraft and automobiles, although the core reading eased 0.2 percent.
Gold was unable to secure its foothold on the $1,200 level this week, hence the week ended with a close at $1,179. Although below $1,200 this remains a critical area for both sides, especially for bulls. Bulls would target $1,250 while sellers would aim for a test of the $1140 area.
Oil seems comfortable trading above mini range resistance around $54 as it hover around $56 the entire week. The next key area for bulls is $65 to $70. But it is still possible to see a test of $50 to $54.
EURUSD managed to add another week of gains after posting a significant gain in the prior week. This could be an indication that the pair is ready to retrace toward 1.10 and test 1.14 in the process.
GBPUSD continue to post hefty gains on a weekly basis. After trading in a range of nearly 500 pips in the prior week, the pair moved within a range of over 300 pips this week. Buyers are now likely looking for a move toward 1.5500.
USDJPY erased gains it created during the start of the week when price declined on Thursday and Friday. A downside breakout seems to be setting up with an eye on 116 at least. This could become certain if the pair fails to break through 120 in the coming days.
The Week Ahead
On Monday, New Zealand will celebrate ANZAC Day. The only critical news piece today is UK’s CBI Industrial Order Expectations.
On Tuesday, news activity would pick up slightly with Japan’s Retail Sales; UK Prelim GDP; US CB Consumer Confidence; and Bank of Canada Governor Poloz’s speech.
Wednesday will start very early with New Zealand’s Trade Balance and ANZ Business Confidence; Germany’s Preliminary CPI; Eurozone M3 Money Supply and Private Loans; UK CBI Realized Sales; Canada’s RMPI, and IPPI; US Advance GDP, Advance GDP Price Index, Pending Home Sales, FOMC Statement, and Federal Funds Rate announcement.
Thursday will get busy very early with RBNZ’s Official Cash Rate announcement and statement and Building Consents; Australia’s Import Prices; BOJ Monetary Policy Statement,, press conference, and Outlook Report; Spain’s Flash CPI and Flash GDP; Germany’s Unemployment Change; Eurozone CPI Flash Estimate and Jobless Rate; Canada’s GDP; US Jobless Claims, Employment Cost Index, Personal Spending, Personal Income, and Chicago PMI.
Friday will end the week with Japan’s Household Spending, Average Cash Earnings, and Tokyo Core CPI; China’s Manufacturing PMI and Non-Manufacturing PMI; Australia’s PPI; UK Manufacturing PMI and Net Lending to Individuals; US ISM Manufacturing PMI and Revised UoM Consumer Sentiment.