The greenback was mixed at the start of the week, with traders looking ahead to a barrage of economic reports due out later in the week. The US equity bourses traded flat in a quiet session while crude oil edged up marginally higher. The Asian stock markets were sharply higher overnight, with Tokyo's Nikkei index surging by 2.3% and the Shanghai Composite index higher by more than 1.6%.
The key highlights for the week ahead will be the FOMC monetary policy announcement on Wednesday and the US Q1 GDP report due out on Friday. The Federal Reserve is expected to leave interest rates unchanged when it announces the results of its policy deliberation at 2:15 PM on Wednesday. The key focus will be in the language of the FOMC's accompanying policy statement, with traders eyeing for the removal of the Fed's oft-repeated mantra to leave interest rates at exceptionally low levels for an extended period of time. The Fed will likely upgrade its outlook for the economy in light of recent improvements in US reports.
The calendar will also see March building permits, the Case-Shiller home price index, the Conference Board's consumer confidence survey, the Richmond Fed manufacturing survey, weekly jobless claims, the Chicago Fed manufacturing survey, New York manufacturing ISM, Chicago PMI, Q1 GDP, and the University of Michigan consumer confidence survey. The data are expected to point toward further recovery in the economy as housing and manufacturing data are all seen posting improvements.
Euro Relinquishes Gains
The euro eased off from its session highs against the greenback amid additional jawboning from Eurozone officials over the Greece bailout package. The single currency will continue to consolidate over the coming sessions with direction likely dictated by news or comments over details on the loan-package to Greece.
EURUSD holds steady at 1.3365, with resistance starting at 1.34, followed by 1.3450 and 1.35. Subsequent ceilings are eyed at 1.3530, backed by 1.3565 and 1.36. On the downside, support is seen at 1.3330, followed by 1.33 and 1.3270. Additional floors are eyed at 1.3240, backed by 1.32 and 1.3150.