There are no significant macroeconomic information expected today from the U.S. - 7.4.2014

There was an active trading observed in Forex market in February. However, the U.S. Dollar Index (USDIDX) on a daily basis has not changed significantly. The number of new jobs in the U.S. (Nonfarm Payrolls) for March rose less than expected and reached 192 thousand people. This is less than February increase by 197 thousand. There are no significant macroeconomic information expected today from the U.S..

The Euro (EURUSD) continued its attenuation (reduction) on Friday in line with our expectations. Investors reacted with surprise to the message of the German newspaper, Frankfurter Allgemeine Zeitung where some anonymous source indicated that the ECB intends to issue money in the amount of 1 trn. Euros ($1.37 trillion ) during the year. And the increase in inflation in this case, according to the calculations of the ECB, will be only 0.2%. The ECB representatives refused to comment it in detail, but they said that the emission is considered by the Governing Board of the Bank.
We want to remind that the Bank of England has printed 200B pounds ($ 332 B ) and spent this sum for British government bonds in the period from March 2009 to February 2010. This event increased inflation in the country by 0.75% -1.5%, according to various estimates, and caused the growth in real GDP by 1.5% -2%. The magnitude of the EZ economy is about four times bigger than the English economy. Their relation is almost proportional to emissions: Britain - $332 B and planned in the EU - $1.37 trn. It is not clear yet why such a slight inflation increase is expected in the EU. After all, the purpose of the ECB is to increase this figure from the current 0.5% to 2% by 2016. And, as we noted in the previous review before it was going to print almost ten times smaller amout of the Euro.

The Australian Dollar (AUDUSD) strenghtened (increased) due to the good labor market data for March from the ANZ banking group. Now investors believe that the official data, which will be released this week on Thursday, may also be positive. Tomorrow at 5-30 CET we will find out about the consumer confidence index for March. The forcast is neutral. The support for the Australian Dollar comes from investors point of view that the discount rate may be increased in the first quarter of next year.

The Canadian Dollar (USDCAD) on Friday demonstrated the strengthening after the labor market data for March. Unemployment fell from 7% to 6.9%. Loonie's strengthening could be more significant, if decline in the PMI of Ivey Purchasing Managers did not prevent it. Today at 18:30 CET we will see the economic data from the Bank of Canada. On April 16, there will be the important Bank of Canada governor, Stephen Poloz's press conference held where he will talk about further regulatory policy regarding interest rate.

The Japanese Yen (USDJPY) strengthened (dropped on the chart). Tomorrow morning, a lot of important economic information, including trade balance for February will come out. In addition, the Bank of Japan will announce its monetary policy settings. Investors believe that it will not increase the annual volume of the issue, which is currently fixed at $60-70 trillion Yen. This decision can support the Japanese currency. Generally, every day of this week will bring economic events important for the Yen.

The Gold (XAUUSD) on Friday showed its maximum growth of more than three weeks. The trading volume was small, 47% below the average for the three months. Investors decided that since the U.S. labor market data was weaker than the preliminary forecasts, it reduces the likelihood of an early increase in the interest rates in the United States. Meanwhile, the Bank of China cut the Gold imports into the country. Market participants believe that this could happen due to the weakening of the Yuan by 2.5% in February and March of this year. This is the most significant drop in its value since 1994.

The Copper prices responded with the fall to the ICSG forecast, about which we wrote in the previous review. However, the rise in prices is observed today. Investors fear that the earthquake in Chile have a negative impact on copper production in this country.

The USDA will release the monthly review on April 9th, which may affect the agricultural futures quotes.