European Preview

By @ibtimes on

Despite a firm start Asian equities are marginally weaker going into the close with the MSCI APEX 50 down -2.40, -0.27%. After a firm close Wednesday US Equity futures are also seeing a slight retreat. On the data side releases in Asia saw Preliminary GDP numbers for Japan coming in weaker than expected in part due to the March earthquake and tsunami to read -0.9% against the -0.5% consensus with prior numbers seeing a downside adjustment. This should put the Japanese economy on its 3rd recession in a decade and adds to the argument for a weaker Yen. We should point out that we now have 3-major currencies at the brink of or are seeing ratings downgrades, the Euro, US dollar, and Japanese Yen. Going forward key release will be UK Retail Sales numbers for April where the Royal Wedding is expected to have had a tangible impact on the figure with consensus forecast calling for a 0.9% read against the previous 0.2% figure. On the currency end we find the dollar majors and their yen crosses at the brink of the next potential up leg with daily EMA lines keeping the top.

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