GBP

The Consumer Prices Index (CPI) grew by 1.6% in the year to
March 2014, down from 1.7% in February. The largest contribution to the fall in
the rate came from transport, particularly motor fuels. Other smaller downward effects
came from the clothing and furniture & household goods sectors.

GBP

The Consumer Prices Index (CPI) grew by 1.6% in the year to
March 2014, down from 1.7% in February. The largest contribution to the fall in
the rate came from transport, particularly motor fuels. Other smaller downward effects
came from the clothing and furniture & household goods sectors.

The output price index for goods produced by UK
manufacturers (factory gate prices), rose 0.5% in the year to March, compared
with a rise of 0.6% in the year to February also UK house prices increased by
9.1% in the year to February 2014, up from 6.8% in the year to January 2014 The
Pound strengthen off the back of these figures early in the trading day as
inflation was expected to be weaker.

EUR

In Germany Yesterday afternoon ZEW Indicator of economic
sentiment – a monthly poll of investors and analysts – slipped for the fourth
month in a row. After the latest fall of 3.4 points, it now stands at 43.2
points, which is still high against the historical average of 24.6 points.
Analysts said uncertainty caused by the Ukraine conflict was making investors
more cautious

The Eurozone trade surplus rose to €13.6 billion surplus in
February, compared with €9.8 billion- surplus in the same period last year.
EU’s seasonally adjusted exports rose by 0.9% while imports fell by 0.5% compared
with January. The Eurozone’s strong trade surplus is one of the fundamental
reasons the euro currency has held its value amidst challenging economic
conditions.

USD

The U.S. March consumer price report showed slightly
higher-than-expected monthly numbers coming in at 0.2% increase in March and
1.5% year on year, largely off the back of increased food prices, airfares and
alcohol. This is well below the annual inflation figure if 2% that the Federal
Reserve are targeting. The Dollar did not move off the back off these inflation
figures.

Today

Overnight we had mixed data form China, the world’s second
largest economy with Q1 GDP figures released in line with expectations at 1.4%
while industrial production was slightly lower and retail sales up at 12.2%.
This pushed up the higher yielding currencies such as the Australian and New
Zealand dollars.

This morning we have unemployment figures in the UK expected
to come in at 7.1% as well as earnings growth figures. Then we have Eurozone
inflation figures, expected to fall to 0.5% in March and could put the Euro
under pressure. In the afternoon we have US mortgage applications and building
permits for March.

Key Announcements:

9.30am – GBP – Unemployment Rate (Feb): Expected to fall to
7.1%.

10.00am – EUR – Consumer Price Index (Mar): Expected to fall
to 0.5%.

13.30pm – USD – Building Permits (Mar): Expected to fall to
995,000.

13.30pm – USD – Housing Starts (Mar): Expected to rise to
968,000.

15.00pm – CAD – BoC Interest Rate Decision: Expected to
remain at 1%.