Markets set to move higher volumes

Market Outlook :

This week we expect the US consumer and business confidence to have given back some ground while job growth is likely to have been positive in March.

In Europe, business surveys are expected to have remained stable and no change in ECB monetary policy is foreseen. The Japanese labour market probably improved in February on the back of with higher economic growth.

Focus on Equities :

Last week started of with a trading session entirely dominated by the geopolitical news. In the US we are now in the middle of the pre-announcement season, which has been very quiet up to now.

This week, the markets will be moving on higher volumes as a result of the traditional window dressing at the end of the quarter. The focus will be on the job creation figure that will be reported on Friday and afterwards investors will probably shift their attention towards the pre-announcements and upcoming results.

Foreign Exchanges :

The March consolidation took the shape of a triangle formation, and the fact that the Euro fell out of this triangle is a bearish signal that puts the odds in favour of a further decline back to the 1.1870 level.

In case of an upward correction, the 1.2225 level should act as resistance, but as long as 1.2300 is not taken out, focus would remain on the downside. The USD/YEN trend is still downward and the dollar may test its previous low at 105.25.

An upward correction from this level is possible, as the daily indicators are rather oversold. First resistance for such an upward correction would be 106.45 - if this level can be taken out, 107.65 would come in sight as next resistance.