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Forex Market UpdateQuiet Asian session as Japan celebrates golden week!
USD found some recovery after Fed's Bernanke's comment on CNBC that his previous remarks were meant to indicate that the Fed is flexible and not dovish
MAJOR HEADLINES â€“ PREVIOUS SESSION
â€¢ US personal income March, out at 0.8% vs. 0.4% expected.
â€¢ US persoanl spending March, out at 0.6% vs. 0.4% expected.
â€¢ Canadian industrial product price (MoM) March, out at 0.8% vs. 0.4% expected.
â€¢ Canadian raw material price index (MoM) March, out at 0.8% vs. 1.5% expected.
â€¢ US PCE deflator (YoY) March, out at 2.9% in line with expectations.
â€¢ US PCE core (MoM) March, out at 0.3% vs. 0.2% expected.
â€¢ US PCE core (YoY) March, out at 2.0% vs. 1.9% expected.
â€¢ US construction spending (MoM) March, out at 0.9% vs. 0.4% expected.
â€¢ US ISM manufactoring April, out at 57.3 vs. 55.0 expected.
â€¢ US ISM prices paid April, out at 71.5 vs. 70.0 expected.
â€¢ Fed's Msokow said FOMC members " worry about everything" but his own personal concern is that core inflation is at the "high end" of his "comfort zone." He made the comments on CNBC TV late Monday in response to a question on his biggest worry for the economy.
â€¢ Japan's monetary base (YoY) April, out at -7.2% vs. prior reading -1.0%.
THEMES TO WATCH â€“ UPCOMING SESSION
Text from Monday:
We saw a follow through after Fridayâ€™s soft US data in the weak dollar which was set off by Fed chairman Bernankeâ€™s dovish comments made last Thursday. So we think it is fair to say that the sentiment has changed from the dollar yield scenario to the FX market focusing on global imbalances, which will likely lead to more dollar weakness in the weeks to come. Also technically most majors are showing very sustainable trends both medium and long term, with EURUSD closing above 1.2590 Friday and USDJPY breaking 113.40 in Asian session, a close below this level today gives scope for a 109.00 target looking ahead.
Note: the support/resistance levels used in the matrixâ€™s of this document are levels derived from yesterday high, low and close. Reference in the text to other support/resistance levels will occur
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