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European markets fall for the fourth day in a row

FXstreet.com (Barcelona) - The German DAX 30 (-1.38%), the French CAC 40 (-1.07%), the Italian FTSE MIB (-0.76%) and the Spanish IBEX 35 (-1.00%) are edging lower once again this week, the fourth day in a row. Most European equity indexes are joining the mood. Futures for the American S&P 500, Nasdaq 100 and Dow Jones are signaling a lower opening between -0.45% and -0.65% ahead of speeches in the US, by Fed’s Bullard and Rosengren, as well as Treasury Secretary Lew later.

The British FTSE 100 is down by -0.49% despite improving UK claimant count change, by -7K in March instead of the expected 0K. The rate came in at 4.6% and the February figure was revised lower from 4.7% to 4.6%. However, the ILO unemployment rate rose from 7.8% to 7.9%. The BoE meeting minutes came in largely as expected: 9-0 in favor of unchanged rates and 6-3 for unchanged QE (Fisher, Miles, and Governor King voted for a £25bn extension).

EMU construction output contracted by -0.8% on the month of February, following a wider fall in February of -2.1% (revised from -1.4%). The annualized figure came in at 0.8%, much better than the prior month data at -9.0% (revised from -7.3%). In Switzerland, Expectations by the ZEW survey surprised with a strong rise from 2.3 to 20 in April, beating the consensus of 5.

Forex: USD/JPY testing the 98.00 barrier

The USD/JPY has moved off its overnight highs of 98.45 Wednesday, gradually surrendering its gains across European trading. Still, the pair remains entrenched in positive territory and is testing the 98.00 barrier in these moments, up +0.53%.
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Forex Flash: Riksbank rate cut unlikely despite clear easing bias – TD Securities

The Riksbank decided to leave the repo rate on hold at 1.00% today, “as unanimously expected, but struck a decidedly dovish tone via its repo rate forecasts, pushing the first rate hike back by nearly a year from what had been estimated previously”, said analyst Marcin Budkiewicz, pointing to the new CPI forecasts as the driving factor, which see inflation taking even longer to return to the Riksbank’s 2% target. “While the Riksbank did still maintain a clear easing bias, we think that an actual rate cut is unlikely unless we see much weaker foreign demand than what is currently anticipated”, continued the TD Securities analysts, noting that the central bank is still worried about financial imbalances. Also, brighter prospects for the Swedish economy, together with low interest rates, have contributed to an increase in housing prices, and this is expected to continue and to contribute to a faster increase in household debt in the coming period than was forecast earlier.
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