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European markets down except for Germany on Merkel comments

FXstreet.com (Barcelona) - The German DAX 30 (+0.13%) and Scandinavian equity indexes are edging higher on Thursday, but the French CAC 40 (-0.22%), Italian FTSE MIB (-0.21%) and the Spanish IBEX 35 (-1.37%) are down while Eurozone officials and leaders speak. German Chancellor Merkel wants that bank shareholders can also suffer losses in the future and said the government rejects common European deposit insurance, for now. Also, she said that higher interest rates would be better for Germany. Finland grand committee head said the Euro would survive in case Cyprus leaves and rejects euro-area fiscal transfers. IMF’s Lipton and PIMCO’s Amey suggested more ECB easing.

The British FTSE 100 is down by -0.20% despite the upside surprise in UK GDP Q1, with +0.3% (QoQ) and +0.6% (YoY). “The unexpected strength came from the services side of the economy with an inexplicable +0.6% aggregate gain there, and a particularly notable 1.4% increase in the transportation and communication sector, which is completely at odds with the reports of poor weather disrupting the distribution channels”, wrote TD Securitiesanalyst Jacqui Douglas, adding that this upside surprise seems to be one that will stick, rather than pull expectations out of Q2, “and we would expect GDP to linger around this same pace of growth in the second quarter”.

Futures for the American S&P 500, Nasdaq 100 and Dow Jones 30 are signaling a higher opening between +0.20% and +0.30% ahead of the US session with jobless claims and Kansas Fed manufacturing activity on the economic calendar.

Forex: USD/CHF testing support at 0.9444

The USD/CHF dropped earlier today during European trading, falling off the 0.9460 handle. However, since then the pair has been completely sideways, failing to derivate much from its present course, which is hugging support at 0.9439/41 in these moments.
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The prevailing risk-on tone in the markets is propping up the upside in the cross, accelerated by the lack of relevant drivers in the euro zone as well. Ahead in the day, the weekly report on the US...
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