Fundamental Headlines
• USDNZD – New Zealand’s exports rose in the 4Q, narrowing their current account deficit to NZ$13.83 billion from NZ$14.28 the prior quarter. Exports grew on additional oil production and record dairy prices, which accounts for a fifth of the total. Despite, the deficit falling to 7.9% of GDP, expectations are that the economy has peaked, and record interest rates will begin to take their toll. Inflation has already started to weigh on consumers, who have begun to reduce their appetite for imports. For more news and resources please visit our New Zealand Dollar Currency Room.
• USDJPY – Japan’s small business confidence rose in March to 46.6. Although, small and midsized companies felt better about the current environment, they were less optimistic about future prospects. Rising costs in oil and other inputs have limited their ability raise wages and will ultimately weigh on consumers. Since, these companies employ 70% of Japan’s workforce it will greatly impact consumer consumption and in turn the economy going forward. For more news and resources please visit our Japanese Yen Currency Room.
• GBPUSD – U.K. total business investment for the 4Q, unexpectedly increased by 1.8%. Experts were predicting a second consecutive 0.5% decline. Meanwhile, the CBI retail trade report saw a rebound from last month’s minus 3 reading to plus one in March. The U.K. economy has recently started to show signs of resiliency despite declining home values. The BoE is expected to cut rate at their April 10 meeting, but the combination of their recent actions to provide liquidity to the market and improving fundamentals may diminish that possibility. Discuss the topic and your trade ideas in the GBP/USD Forum.
• Clinton Fears Japan Style Malaise (link) – Wall Street Journal
• Bond Loan Markets Remain Wary (link)– Wall Street Journal
• Paulson Eyes Scrutiny Of Wall St Firms (link) – Financial Times
• Fed May Emerge From Crisis With More Influence At SEC Expense (link) – Bloomberg
• European Stocks Rise Led By H&M, Swiss Life, U.S. Futures Gain (link) – Bloomberg
