<p>Headlines:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/eurozone-march-preliminary-cpi-69-vs-71-yy-expected-20230331/“>Eurozone March preliminary CPI +6.9% vs +7.1% y/y expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/bond-yields-dip-after-eurozone-inflation-data-20230331/“>Bond yields dip after Eurozone inflation data</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/and-bond-yields-climb-back-higher-after-the-dip-20230331/“>And.. bond yields climb back higher after the dip</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/france-march-preliminary-cpi-56-vs-55-yy-expected-20230331/“>France March preliminary CPI +5.6% vs +5.5% y/y expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/germany-february-retail-sales-13-vs-05-mm-expected-20230331/“>Germany February retail sales -1.3% vs +0.5% m/m expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/germany-march-unemployment-change-16k-vs-0k-expected-20230331/“>Germany March unemployment change 16k vs 0k expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/germany-february-import-price-index-24-vs-10-mm-expected-20230331/“>Germany February import price index -2.4% vs -1.0% m/m expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/uk-q4-final-gdp-01-vs-00-qq-prelim-20230331/“>UK Q4 final GDP +0.1% vs 0.0% q/q prelim</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/uk-march-nationwide-house-prices-08-vs-03-mm-expected-20230331/“>UK March Nationwide house prices -0.8% vs -0.3% m/m expected</a></li></ul><p style=““ class=“text-align-justify“>Markets:</p><ul><li>GBP leads, CHF lags on the day</li><li>European equities higher; S&P 500 futures up 0.2%</li><li>US 10-year yields down 1 bps to 3.541%</li><li>Gold flat at $1,980.83</li><li>WTI crude up 0.6% to $74.94</li><li>Bitcoin down 0.6% to $27,974</li></ul><p style=““ class=“text-align-justify“>Inflation data was a focus in Europe today as we saw the preliminary figures for March come in for the Eurozone. Headline annual inflation dipped by slightly more than estimated to just under 7%, reflecting its sharpest drop on record. However, core annual inflation ticked higher to a fresh record high in what is a contrasting report of sorts.</p><p style=““ class=“text-align-justify“>The bond market focused on the lower headline figure though, as bond yields dipped and pared its early advance. Short-end yields have come back up slightly but the long-end is basically sitting marginally lower on the day now.</p><p style=““ class=“text-align-justify“>That saw USD/JPY fall from a high of 135.50 to sit closer to 133.10 levels at the moment, still up by 0.4% though.</p><p style=““ class=“text-align-justify“>The dollar was steadier throughout, even as equities are seen just a touch higher – after having spent much of the session being little changed.</p><p style=““ class=“text-align-justify“>EUR/USD is down 0.2% to 1.0875 from around 1.0900 in Asia while GBP/USD is flattish around 1.2380 levels after coming close to test its December and January highs near 1.2446 earlier in the day.</p><p style=““ class=“text-align-justify“>Meanwhile, USD/CAD is seen bouncing off its 100-day moving average to be up 0.2% to 1.3545 while the antipodeans are slightly lower and still rather trapped in trading this week against the dollar mostly.</p><p style=““ class=“text-align-justify“>Month-end and quarter-end will be a focus point before we wrap things up this week, and don’t forget that we also still have the US PCE price index to follow in the session ahead.</p>
This article was written by Justin Low at www.forexlive.com.