Daily Market Report 25/04/2014

CNY

China’s factory sector output has shrunk for a fourth
month running, although there are signs that Beijing’s stimulus efforts are
starting to pay off.

GBPCNY is currently trading at 4 ½ year highs.

EUR

The European Central Bank is ready to take action if
inflation falls too far below its forecast.

CNY

China’s factory sector output has shrunk for a fourth
month running, although there are signs that Beijing’s stimulus efforts are
starting to pay off.

GBPCNY is currently trading at 4 ½ year highs.

EUR

The European Central Bank is ready to take action if
inflation falls too far below its forecast.

Mario Draghi said yesterday the European Central Bank
might start broad-based asset purchases if the inflation outlook worsens.

The comments have weakened the euro slightly but further
weakness could be on the cards once Draghi actually takes action.

JPY

The yen traded near the strongest level in a week against
the dollar as a more tensions between Russia and Ukraine provoked investor demand
for safety.

US Secretary of State John Kerry warned that Russia was
running out of time to comply with terms aimed at de-escalating the situation.

USD

The US dollar headed for a five-day decline versus the
euro despite data showing durable goods orders for the month of April rising to
2.6%.

However initial jobless claims did rise more than
expected up to 323,000 for last week.

Today

Today the UK received some good news with retail sales
only falling to 0.1% in March from 1.3% in February. Analysts were expecting
sales to have dropped by 0.4%.

So despite the decline, the news was better than
expected, causing the pound to gain in early morning trade.

Key
Announcements:

14.45pm – USD – Markit Services PMI (Apr): Expected to
expand to 56.

14.55pm – USD – Reuters/ Michigan Consumer Sentiment
Index (Apr): Expected to increase to 83