Dollar data strong but events over the pond taking centre stage

US Dollar:

The U.S. Dollar price was mixed amongst the major currencies on Monday as investors scaled back their appetite for risk and reverted to safety-linked currencies despite Euro-region governments announc¬ing a $146 billion Greek bailout plan yesterday. These events took centerstage as a somewhat busy economic calendar had a comparatively modest effect on the domestic currency. Consumer spending in March advanced 0.6% after climbing a revised 0.5% in February – in line with consensus forecasts, and pointing to a recovery that may accelerate when the economy creates more jobs as the Fed projects the unemployment rate to fall to 9.6% by the end of the year from the its current level of 9.7%. The report highlights an improved outlook for the region as consumers become more willing to consume, an indication that spending may contribute more to the expansion in the coming months as incomes advance. Nevertheless, the Fed’s preferred price measure added 0.1% in March, while the annualized reading jumped 1.3%.

Data— US Pending home sales MoM/YoY (MAR) Factory Orders (MAR)

Pound:

Sterling remains under pressure as ‘E Day’ looms on Thursday. Mixed views have surfaced recently on the possible effects of a hung parliament which is looking increasing likely but the general consensus is negative. Added pressure on the currency will come as the futures market in bonds and sterling has agreed to open for the first time at 1am on Friday and as such, Sterling could be battered by speculators on the interna-tional money markets within hours of the election result The City is concerned that a hung parliament could mean Britain is unable to take rapid action to cut its budget deficit and force a similar battle with bond dealers that the one that forced Greece to resort to €110bn (£95bn) a bailout package put together by the euro zone countries and the International Monetary Fund. Traders have called for steep cuts in welfare spending by highly indebted European countries to avoid a repeat of the Greek crisis. Spain, Portugal and Ireland have already been targeted by speculators. Some economists have included Britain and Italy in the European "circle of doom" countries that ring the more financially secure nations of France and Germany.
Data—GBP M4 Money Supply MoM/YoY (MAR) Mortgage Approvals (MAR)

Euro:

Euro zone finance ministers on Sunday approved a €110bn ($146bn) package of emergency loans aimed at averting a sovereign default by Greece and preventing a confidence crisis spreading to countries such as Spain and Portugal. The loans to Greece from the Euro zone countries and the International Monetary Fund were described by IMF officials as “big and unprecedented”. The details of the package were thrashed out at a meeting of Euro zone finance ministers on Sunday evening. Euro zone countries are to contribute €80bn of the total. The package includes tough measures to reduce the size of Greece’s bloated public sector, cuts in public sector salaries and pensions, a rise in value added tax and an increase in fuel, alcohol and tobacco taxes. The single currency hasn't found any footing on which to build as base yet as traders are still unsure if Greece will be able to meet to strict terms on the bailout package and also if other countries, namely Portugal and Spain will come under the same scrutiny.
Data – Eurozone PPI MoM/YoY (MAR) GER Retail Sales MoM/YoY (MAR)

General:
• Goldman Sachs, Wall Street most profitable investment bank has come under increased scrutiny as 6 shareholders launch civil lawsuits citing breach of fiduciary duty, corporate waste, abuse of control, mis¬management and unjust enrichmentt.

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GBP/EUR	1.1538
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