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23:01 United Kingdom Rightmove House Price Index (MoM) April +1.6% +2.9%
23:01 United Kingdom Rightmove House Price Index (YoY) April +2.2% +3.4%
The euro declined to a one-month low against the dollar before Spain auctions bills and bonds amid concern Europe’s debt crisis will continue. Spain will sell 12-month and 18-month bills tomorrow, followed by April 19 auctions of debt due in 2014 and 2022. Yields on the nation’s 10-year notes soared as much as 18 basis points to 6 percent on April 13, edging toward the 7 percent level that pushed Greece, Ireland and Portugal into rescues. The 17-nation currency slid to its weakest versus the British pound since September 2010 after the cost of protecting Spain’s debt from nonpayment climbed to a record.
For the first time in seven months, traders are testing the Swiss National Bank’s determination to limit the franc’s strength against the euro as Europe’s resurgent debt crisis drives up demand for safer assets. The franc breached the central bank’s cap of 1.20 to the euro on April 5 and April 9, and options investors are predicting even more appreciation. It jumped 1.1 percent versus nine peers in a basket of currencies in March, the biggest gain since July, and is up 1.9 percent from a nine-month low on Jan. 11, according to data compiled by Bloomberg. Demand for Swiss assets is so strong that investors accepted negative yields at an auction of six-month government bills last week as Spain’s borrowing costs rose toward levels that prompted bailouts for Greece, Ireland and Portugal. The franc is climbing against its peers even after the central bank repeated a commitment to prevent increases that threaten to bring about deflation and hurt exports.
The Australian dollar fell for a second day as Asian stocks extended a global rout, reducing demand for higher-yielding assets.
EUR/USD: during the Asian session the pair continued Friday’s falling.
GBP/USD: during the Asian session the pair fell, continued decrease in Friday.
USD/JPY: during the Asian session the pair lowered below Y80.50.
European data starts at 0630GMT with the France BoF retail survey. The European data calendar then rounds off at 0900GMT with the
EMU trade balance for February. UK data at 0830GMT includes CML Mortgage Approvals data. US data starts at 1230GMT when retail sales are expected to rise 0.3% in March after a solid increase in February. At 1400GMT, US business inventories are forecast to rise 0.6% in February. Factory inventories were already reported up 0.4%, while wholesale inventories rose 0.9% in February. The annual revisions to the wholesale data released March 30 will be included in February business inventory data.
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