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Better UK Jobs Data Leaves The BoE Under Pressure

Asian equity markets are trading on the back foot overnight, the subdued tone has been driven by ongoing investors' concerns regarding the global rate and growth environment. Data out of China produced mixed responses as GDP and retail sales numbers came in stronger than expected, however, this was countered by industrial production which came in below expectations leaving the mainland Shanghai Comp flatlining on the session while the Hang Seng dipped into negative territory. The NIkkei managed to buck the negativity gaining 0.5% on the day as reports from the Bank of Japan suggest that they will target a CPI level of 1.6-1.9% sub the current 2% level suggesting a delayed exit from easy monetary policy. Employment data out of the U.K. this morning has done little to alleviate pressure on the Bank of England, as employment growth expanded by 169k for the three-month period to February, and pay growth jumped to 6.6% as the prior number was also revised higher suggesting further inflationary pressures for Bank officials to battle.

European investors will get an early indication of April economic activity for the single currency zone with the Germany ZEW  release, however, the survey is composed of economic analysts' expectations as such is deemed less reliable than the PMI data set for release Friday. March saw a retreat in both expectations and the current situation assessment breaking a six-month streak in improvements in sentiment, it is likely this was prompted by concerns regarding banking system stress.

Stateside, the housing market has been the principal area of the US economy that has seen the largest impact from the elevated rate environment, however, February saw an upside surprise in housing starts as they increased to a six-month high. Today’s data for March will be eyed for confirmation of a nascent trend in housing market improvement or another false dawn spurred by unusually midler weather at the start of the year rather than a genuine shift in buying appetite amongst US consumers. US investors will parse further banking earnings today with Goldman Sachs, Bank of America, and Bank of NewYork Melon on deck, the banking earnings so far have been a mixed bag with the larger franchises benefiting from a flight to safety for deposits, while small to midsize players have seen a decline in deposits and increased withdrawals, StateStreet being the latest victim of banking concerns as it lost a record amount of deposits $26Bln for the quarter.
 

FX Options Expiries For 10am New York Cut 

(In bold represent larger expiries, more magnetic when trading within daily ATR)

• EUR/USD: 1.0865 (1.8BN), 1.0900 (431M), 1.0920-25 (320M),
• 1.1000 (1.5BN), 1.1050 (1.1BLN)
• USD/CHF: 0.9000 (230M)
• EUR/CHF: 0.9830 (258M), 0.9870 (250M), 0.9900 (241M)
• EUR/GBP: 0.8700 (350M) 0.8810 (279M)
• AUD/USD: 0.6800 (1.25BN)
• USD/JPY: 134.10 -15 (301M), 134.50 (236M), 135.00 (417M) 
   

Overnight News of Note

• Asian Stocks Trim Losses As China Beats GDP Forecasts
• Fed’s Barkin Wants More Evidence Inflation Is Easing To 2% Goal
• Cleveland Fed Report Near-Term Inflation Expectations Now Key
• House Speaker McCarthy Offers Budget Cuts For Debt Limit Vote
• G-7 Vows To Back Ukraine Indefinitely, Seeks Stable Chinese Ties
• China Economic Growth Jumps Back As Consumers Spend Again
• Taiwan To Buy 400 US Missiles Intended To Repel China Invasion
• Bank Of Japan Forecasts FY25 CPI To Rise 1.6-1.9%, Jiji Reports
• Japan Insurer’s Plan To Sell Foreign Debt Flashes Market Warning
• RBA Discussed Quarter-Point Hike Before Deciding On April Pause
• German ZEW Investor Morale To Improve As Banking Woes Abate
• Tough Earnings Season Off To Best Start In A Decade, BofA Report
• Ford Creates New Link To China With Plan To Import Lincoln SUVs

(Sourced from Bloomberg, Reuters and other reliable financial news outlets)
 

Technical & Trade Views

SP500 Bias: Intraday Bullish Above Bearish Below 4100

• Primary support is 4000
• Primary objective is 4207
• Below 3985 opens 3950
• 20 Day VWAP bullish, 5 Day VWAP bullish

(Click on image to enlarge)

EURUSD Bias: Intraday Bullish Above Bearish below 1.0890

• Primary support  is 1.07
• Primary objective is 1.1128
• Below 1.0700 opens 1.0660
• 20 Day VWAP bullish, 5 Day VWAP bearish

(Click on image to enlarge)

GBPUSD Bias: Intraday Bullish Above Bearish below 1.2300

• Primary support  is 1.2250
• Primary objective 1.2659
• Below 1.22 opens 1.2010
• 20 Day VWAP bullish, 5 Day VWAP bearish

(Click on image to enlarge)

USDJPY Bias: Intraday Bullish above Bearish Below 133.00

• Primary resistance  is 135.15
• Primary objective is 129.15
• Above 136 opens 137.90
• 20 Day VWAP bearish, 5 Day VWAP bullish

(Click on image to enlarge)

AUDUSD Bias: Intraday Bullish Above Bearish below .6696 

• Primary support  is .6620
• Primary objective is .6814
• Below .6560 opens .6450
• 20 Day VWAP bearish, 5 Day VWAP bullish

(Click on image to enlarge)

BTCUSD Intraday Bias: Bullish Above Bearish below 29000 

• Primary support 23000
• Primary objective is 30500
• Below 23000 opens 22400
• 20 Day VWAP bullish, 5 Day VWAP bullish

(Click on image to enlarge)

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