Archived IMT (2011.04.14)

US PPI inflation expected to retreat to 1.1% from last month's 15-month high of 1.6%. Jobless claims are estimated to fall below 380K for the first time in 5 weeks. Minnesota Fed President Kocherlakota is expected to speak at a hometown meeting - audience questions may call on the FOMC voter to expand on his recent surprising suggestion for the Fed to tighten by as much as 75bps before the year-end. Hawkish Fed's Plosser to speak this afternoon as well as Tarullo

ECB ARPIL MOTHLY REPORT affirmed the notion that policy remains accommodative calling for more focus on inflation risks. Euro continued to test 1.45 handle but last seen putting in a potential triple-top at 1.4520. Sterling is outperforming on a relative basis on expected M&A flows, with IPO for Swiss commodities trader Glencore reported to be heavily balanced toward a London listing. EUR/GBP traded down 60 pips below 0.8860 while GBP/USD advanced above 1.6350, a 3-day high.

China monthly lending exceeds estimates but PBoC advisor warns its economy may slow ahead of may slow ahead of official monthly metrics. Yen demand remains firm - USD/JPY decline triggers stops below 200-day MA around 83.50. Weekly jobless claims expected at 6-week low below 380K. New FOMC hawk Kocherlakota takes the podium.

Risk damage was on display in Asia following a Chinese press report citing local central bank advisor warning that CHINAs ECONOMY COULD could "really slow". Markets further pared short-Yen exposure, sending USD/JPY pair to a 2-week low below 83.50 - technical damage exacerbated the selloff with reported stops building below 200-day MA around that level.

CHINESE INFLATION DATA LEAKED. March economic metrics from China, not expected officially before tomorrow but leaked in the local press, saw industrial production and new loans data - key measures of growth - well above expectations. March CPI was also hotter than expected, back above the 5% threshold around 5.3-5.4%. Official confirmation is expected at 22:00ET of tomorrow's session.

By GG - AshrafLaidi.com Staff