FX News & Overnight Technical Levels - May 10th

Japanese Yen – JPY

·    Japanese money supply growth rises 1.1 percent on the annualized figure.  Printing well within estimates, report lends no support for near term rate hike by the Bank of Japan.

·    Fukui commented on the weaker yen boosting domestic export competitiveness.  Stated that rates are ‘quite low’ and that inflationary pressures are still expected to rise over the long run.  However, the pace of rate hikes depends notably on the overall economy with emphasis on growth.

Australian Dollar - AUD

·    April employment advances stronger than expected at 49.6K.  The report is far better than the consensus 12.5K estimate, supports the unemployment rate decline to 4.4 percent, the lowest level since 1974. 

New Zealand Dollar - NZD

·    Employment in first quarter rises 1.2 percent, stronger than expected compared to consensus estimates of 0.2 percent.  Notably, however, unemployment advanced to 3.8 percent as expected.

Europe – Euro/British Pound

·    ECB Leaves rates on hold at 3.75 percent, as anticipated.

·    Bank of England Raises 25 basis points to 5.5 percent, pound drops as decision was as expected.

·    April house prices rise 1.15 in the month over month, higher than expected.  Manufacturing production also surpised to the upside, advancing 0.6 percent on the monthly comparison while rising 0.9 percent on the annualized figure.

·    March UK Visible trade balance fell wider than expected to a deficit of 7.048 billion.

·    Swiss SECO Consumer climate report for the month of April was as expected, prints 20 figure.

Watch Out For….

Japanese yen continued momentum through Asian session, currency pair moves above the pivotal 120 handle.

British pound declines following as expected Bank of England decision.  Remains well below yesterday’s 1.9900 figure

Euro remains supported at the 1.3520 figure, bounces still remain questionable.