USD weakness is the focus across the board, but beware of the GDP figures tomorrow.

Overnight News Bullets

• SW Unemployment Rate March, out at 4.6% vs 4.8% exp.

• SW Trade Balance March, out at 14.6B vs 14.1B exp.

• GE IFO - Business Climate April, out at April, out at 108.6 vs 107.9exp.

• GE IFO - Current Assesment April, out at 113.2 vs 112.5 exp.

• GE IFO - Expectations April, out at 104.3 vs 103.5 exp.

• UK GDP Q1, out at 0.7% vs 0.6% exp. YoY out at 2.8% in line with exp.

• UK Index of Services feb, out at 0.8% in line with exp.

• US Mortgage Apps April 20, out at 3.6% vs a prior reading of -2.5% exp.

• Durable Goods Orders March, out at 3.4% vs 2.5% exp. Ex transportation out at 1.5% vs 1.1% exp.

• US New Home Sales March, out at 858K vs 890K exp.

• New Home Sales MoM, out at 2.6% vs 5.0% exp.

• US API US Crude Inventories April 20, out at 5544K vs a prior reading -3280K.

• NZ RBNZ Official Cash Rate April 26, out at 7.75% vs 7.50% exp.

Markets

• FX: USD TWI again edging lower. EURUSD testing all-time high at 1.3666.

• Fixed Income: Slightly higher, but still consolidating in ranges.

• Stocks: Some strength in European and US indices. Also Nikkei is up +1 percent this morning.

• Commodities: Precious metals consolidating. Crude oil again testing resistance at 66.5.

O/N Data Heat map:

Calendar

Today's Highlights:

This and Next Week??™s Highlights:

What's going on?

• Major focus on EURUSD. Buy the break of 1.3666.

• Still USD weakness across the board. Should be a negative for European stocks.

• S&P500 blasting higher on the weakening USD.

• RBNZ made a surprise hike, taking rates to 7.75%, but we didn??™t see any follow-through in NZDJPY. That may come later today, but it seems worrying that the cross didn??™t move higher. Buy way-out of the money puts on NZD for modest premiums.

FX

EURUSD about to break all time high at 1.3666!