Dollar remains generally smooth, except against the yen, after the release of Q1 GDP data from the U.S.. U.S. economy grew an annualized 3.2% in the first Quarter was slightly below expectations at 3.4%. Price Index increased by 0.9% expected, while the core PCE rose by 0.6%. Labor costs jumped 0.6% in Q1 as well. In Canada, GDP expanded by less than expected 0.3% mom in February. Involved IPPI declined 0.4% mom in March with rmpi increased by 0.8%. Published earlier, CPI euro area remained at 1.5% year on year in April, unchanged, while unemployment remained stable at 10% in March. Swiss KOF leading indicator rose in April to 1.99.
Euro extends recovery of the European Commission, said that negotiations could conclude, for the entire rescue package will be wrapped up Saturday. There are also rumors that the German financial and industrial enterprises of between 1-2b to Greece EUR rescue package. Greek CDS on bonds fell further in the direction of the 600-level, compared to more than 800 earlier this week, while CDS went to Portugal and Spain declined.
The Chairman of the SNB's Hildebrand said today that it will be when rupee appreciated considerably due to the flow of safe harbor, there would be a "negative effects". Hildebrand reiterated that do not allow the SNB "Development of a new risk of deflation and the Bank will act decisively to prevent" excessive appreciation ". Hildebrand also said that "financial market ensures that emerged on the public finances of the individual euro area countries poses a substantial risk to the economy recovers.
The paradigm shift in risk appetite sent this week Japanese yen lower, while the currencies of the raw materials are received. NZD / JPY 68.62 resistance is today announcing the case and said that the consolidation of 69.70 is over. We expect more short-term strength in the cross and then a break of 69.70 in the medium term growth to continue in 2009 by 44.19 deep.
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