GBP Firms on Retail Sales, CAD Awaits CPI

German Ifo and PPI rose; UK retail sales soared by the highest in 14 months. Canadian CPI and leading indicators are next along with G20 and IMF/World bank meeting. Our short in USDCAD was unfilled by 6 pips, EURUSD longs remain in progress, the long EURJPY is done, now nearing the sort trade of the pair, Short CL_K (US crude) nears execution. See more below.

USD trades lower against all majors except JPY. European equities are gaining about 1% and the relative strength winner is CHF while JPY lags.

Despite the ongoing turmoil in the Eurozone, the German economy proved to be resilient as all of the components that form German Ifo data improved in April. Business climate rose to 109.9 from 109.8 which is the sixth monthly increase. Current assessment improved to 117.5 from 117.4 and expectations were unchanged at 102.7. German PPI rose in March to 3.3% from previous 3.2% as energy prices continue to rise. EURUSD trades at session highs near 1.3200.

UK retail sales also surprised to the upside in March as they rose to 1.8% (highest since January 2011) from -0.8% m/m (3.3% from 1.0% y/y). Core sales grew 1.5% from a revised -0.7% m/m (3.3% from 1.0% y/y). Warm weather that boosted gardening tools and clothes sales and especially car fuel sales that jumped nearly 5% as people prepared for a possible strike by fuel tanker drivers all contributed to the increase. GBP was boosted across the board on the release but it is currently losing against the EUR. GBPUSD trades above 1.6100.

The US session is limited to Canadian reports that are both due at 8:30 am ET. March CPI is expected to slow considerably to 2.1% from 2.6% y/y (core CPI seen lower at 1.9% from 2.3%). March leading indicators are anticipated lower at 0.4% from 0.6%.

There are no US reports today.

Today marks the second day for the G20 meeting in Washington. The IMF/World bank meeting begins today and continues tomorrow. The total amount in new emergency funding will be the key.

Our short in USDCAD was unfilled by 6 pips, EURUSD longs remain in progress, the long EURJPY is done, now nearing the sort trade of the pair, Short CL_K (US crude) nears execution. Both AUDUSD and gold are in progress. For direct access to these ideas, click here: http://ashraflaidi.com/products/sub01/access/?a=628 Non Subscribers, can click here to join: http://ashraflaidi.com/products/sub01