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Hi my name is Jeff Fretts, welcome to Axiory's news broadcast. Here is the latest high impact
market news for the week ending 26th April.
UK avoided the so called triple dip recession. More importantly, the 0.3% qoq growth in Q1
GDP was indeed stronger than expectation of 0.1%. The data lifted some pressure on BoE
for expanding the asset purchase program. The MPC has been split with outgoing governor
King and two other members voted for expansion in prior meetings. BoE announced an expansion
of its Funding for Lending Scheme to help small businesses. The program will now last
until January 2015.
Current BoE governor King said that the FLS revamp will give banks "continued assurance
against the risk that market funding rates increase, especially in the light of continued
uncertainty in the euro area," and will "help to maintain easier funding conditions for
banks into 2015, and thereby help to support credit conditions and the recovery."
The greenback was weighed down by the extended rebound in gold as well as weaker than expected
GDP report. Economic data from US saw Q1 GDP rose 2.5% annualized versus expectation of
3.0%. Though, that's notably better than Q4's 0.4%. The price index rose also below expectation
and headline durables dropped significantly more than expected in March. The disappointing
data added to expectations that the Federal Reserve will continue its monetary easing
program, amid lingering concerns over the outlook for the U.S. economic recovery. A
number of key important economic data will be released from US this week, including non-farm
payrolls and will be closely watched by the markets.
At the BOJ meeting in April, policymakers left the monetary measures unchanged. The
policy rate was maintained at virtually zero and asset purchases stayed at an annual pace
of 60- 70 trillion yen. The central bank, however, upgraded the economic outlook aggressively
with economy expected to start picking up by the middle of this year. While differentiated
on the inflation outlook, policymakers were unanimous in voting to leave the quantitative
and qualitative measures unchanged at the meeting.
Now, the most important upcoming fundamental news for the week starting Monday April 29th,
selected for you according to market movement significance.
In the week ahead, investors will be awaiting mainly the outcomes of policy meetings by
the Federal Reserve and the ECB, as well as Friday�s closely watched report on U.S.
nonfarm payrolls. Added to this, Wednesday�s ADP�s non-farm payrolls forecast and Friday�s
ISM in U.S. services will be also closely watched.
Here are the major currency pairs... Up first the Euro
The euro edged higher against the dollar on Friday after weaker-than-expected data on
U.S. first quarter growth, but gains were capped amid concerns over a possible rate
cut by the European Central Bank.
But the euro remained under pressure as speculation over an interest rate cut by the ECB intensified
following weak German economic data earlier in the week. Data on Wednesday showed that
the Ifo index of German business climate fell to a four month low. The data came one day
after a report showed that Germany�s manufacturing and service sectors contracted in April. Recent
comments by ECB officials have indicated that the bank would consider cutting rates if economic
data continued to deteriorate.
and finally the dollar yen
The dollar was sharply lower against the yen on Friday after data showed from U.S.while
the yen found support after the Bank of Japan left monetary policy on hold. The central
bank also indicated that it may take longer than two years to achieve its 2% inflation
target, fuelling speculation that the bank may implement additional easing measures later
this year.
The dollar rallied to four-year lows against the yen earlier this month after the BoJ unveiled
unprecedented monetary easing measures at its April 4 policy meeting, but failed to
breach the key psychological 100 per yen level.
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currency news that matters to you! Don�t forget to check us out on Facebook and Twitter,
have a pipfilled day, goodbye!