EUR

Despite data revealing that the Eurozone inflation
dropped further than expected to 0.5%, the Euro has surprisingly gathered strength
this morning.

The data will put Mario Draghi and the European Central
Bank under pressure on Thursday, in this month’s monetary policy meeting.
Whilst interest rates remain at historical lows, the ECB could unveil monetary
easing measures to combat the lower rate of inflation.

GBP

EUR

Despite data revealing that the Eurozone inflation
dropped further than expected to 0.5%, the Euro has surprisingly gathered strength
this morning.

The data will put Mario Draghi and the European Central
Bank under pressure on Thursday, in this month’s monetary policy meeting.
Whilst interest rates remain at historical lows, the ECB could unveil monetary
easing measures to combat the lower rate of inflation.

GBP

Britain’s housing market could be heading for a bubble
were as new data suggests that demand is far outstripping supply.

Property research firm Hometrack, suggested more house
price growth ahead as demand grew 6.6% in March – which it measures by new
buyers registering with agents – and supply rose 1.9%, based on new listings

Hometrack also confirmed that house prices rose 0.6% in
March, a slowdown from 0.7% growth in February, on lower growth in London and
the south-east.

Also Britain’s biggest businesses are preparing to invest
£200bn over the next two years as they seek to benefit from the recent upturn
in economic growth.

A survey by accountants Deloitte found 80% of companies
with a turnover of more than £1bn intend to invest this year, with close to 70%
earmarking at least £250m of investments to drive growth. This should see some
further sterling strength. However concerns over the UK deficit are also being
brought to the surface as the pound strengthens.

USD

The dollar approached a two-week high versus the yen
before Federal Reserve Chair Janet Yellen speaks this a and ahead of figures
tomorrow that may show U.S. manufacturing strengthened this month.

Employers in the US have roughly added 200,000 jobs in March.
Nonfarm payroll figures are due out this Friday.

The US are expecting better data to have a more
widespread supportive impact on the USD.

AUD

Australia’s currency pared an advance in March against
all Group of 10 peers before a Reserve Bank policy decision tomorrow, when
officials are predicted to refrain from lowering borrowing costs for a
third-straight time this year.

Key Announcements:

13.55pm – USD – Fed’s Yellen Speech.

14.30pm – USD – Dallas Fed Manufacturing Business Index
(Mar): Previously at 0.3.