Poole's comments on US inflation could revitalize the case for a stock market sell-off.

Overnight News Bullets

• Swedish PMI Survey (Mar) out at 60.6 vs. 62.5 expected.
• RBA Commodity Index SRD YoY% (Mar) out at 9.0% vs. 8.1% expected.
• A Streak of Euro-Zone Manufacturing PMI Survey slightly disappointing.
• UK BoE Equity Withdrawal (4Q) out at ??14.6B vs. ??11.8B expected.
• Norwegian PMI (Mar) out at 62.3 vs. 60.0 expected.
• US ISM Manufacturing (Mar) out at 50.9 vs. 51.4 expected.
• US ISM Prices Paid (Mar) out at 65.5 vs. 58.5 expected.
• Australian Trade Balance (Feb) out at -838M vs. -1100M expected.
• Swiss CPI MoM (Mar) out at 0.1% as expected.
   

Markets

• FX: GBP strong across the board. JPY lacks direction. USD slightly lower.
• Fixed Income: Consolidation in very tight ranges.
• Stocks: Posting modest gains across the board.
• Commodities: Precious metals not moving. Crude Oil consolidating.

O/N Data Heat map:

Calendar

Today's Highlights:

This and Next Week??™s Highlights:

What's going on?

• Stocks are coming back, but in thin volume. A break of 1439 in S&P500 is crucial for stocks. The longer it takes, the bigger the likelihood that we will head lower again.
• The Fed??™s Poole says that he prefers core inflaiton at 1.5%. That should not support stocks.
• AUD and GBP very strong. 0.8214 in AUDUSD only a matter of time. GBPUSD to test 1.99. Be short EURGBP.
• Iran and UK about to come up with a solution for the 15 sailors. That might put in a lot of downward pressure on crude oil, which has been searching for a direction in the last three days. We could have a really big move to the downside.

FX

EURJPY breaking previous highs?