EUR

Consumer confidence in Italy jumped to 105.40 in April from
101.9 in March showing increasing optimism about the future of the country’s
economy.

The data also suggests that the new government headed by
Premier Matteo Renzi is having a positive impact on the mood of the nation.

The euro finished relatively flat on the day as investors
clearly seem nervous ahead of key inflation data due for release later this
week from Germany and the Eurozone.

EUR

Consumer confidence in Italy jumped to 105.40 in April from
101.9 in March showing increasing optimism about the future of the country’s
economy.

The data also suggests that the new government headed by
Premier Matteo Renzi is having a positive impact on the mood of the nation.

The euro finished relatively flat on the day as investors
clearly seem nervous ahead of key inflation data due for release later this
week from Germany and the Eurozone.

USD

Data from the US was fairly positive with pending home sales
increasing month on month in March to 3.4%

The data suggests that actual house sales should bounce back
following the lull in winter.

More encouraging data was found in the Dallas Fed
manufacturing survey which showed that factory activity rose higher than
expected to 11 beating expectations of a rise to 6. In particular factory
activity in Texas climbed for the 12^th straight month.

The data gave the US dollar a bit of respite after having weakened
to a fresh 4 ½ year low against the pound in early European trade, with the
greenback finishing unchanged on the day.

Today

The UK and the Eurozone look to be in key focus this
morning.

UK 1^st quarter GDP figures are forecasted to show
an increase in economic growth to 0.9% from 0.7% in the 4^th quarter
of 2013.

Eurozone consumer confidence and business sentiment is set
to have improved for the month of April which should continue to support the
euro early on today. But we could see the euro under selling pressure should the
rate of inflation fall in Germany.

Month on month inflation is forecasted to come in at -0.1%,
and thus deflation; whilst year on year inflation is set to have increased to
1.4%.

Key Announcements:

9.30am – GBP – Gross Domestic Product (Q1): Expected to rise
to 0.9%.

10.00am – EUR – Economic Sentiment Indicator (Apr): Expected
to rise to 103.

10.00am – EUR – Consumer Confidence (Apr): Expected to rise
-8.7.

10.00am – EUR – Industrial Confidence (Apr): Expected to
rise to -3.

13.00pm – EUR – German Consumer Price Index (Apr): Expected
to fall to -0.1%.

15.00pm – USD – Consumer Confidence (Apr): Expected to rise
to 83.