The Monetary Policy Committee member Martin Weale said on Wednesday that the Bank of England should raise its interest rate sooner than expected if wages continue to grow over the next few months.

Weale noted that there is a risk that inflation could decline further, but he expects that it will recover back towards the BoE's 2% target.

He pointed out that a stronger pound could also be a risk.

The U.S. dollar traded mixed to higher against the most major currencies in the absence of any major U.S. economic reports.

The greenback remained supported by speculation that the Fed might start to raise its interest rate sooner than expected.

The euro traded mixed against the U.S. dollar. Concerns over Greece's further bailout policy and quantitative easing by the European Central Bank (ECB) still weighed on the euro. The ECB had started to purchase government bonds on Monday.

The ECB President Mario Draghi said on Wednesday that bond purchases should help to boost inflation and encourage investors to shift to riskier assets. He noted that quantitative easing was unconventional but "not unorthodox".

The Eurogroup of euro zone finance ministers continued to discuss proposed Greek economic reforms.

The British pound fell against the U.S. dollar after the weak economic data from the U.K. The National Institute of Economic and Social Research (NIESR) released its estimate of gross domestic product (GDP) for the U.K. on Wednesday. The GDP estimate rose by 0.6% in three months to February, after a 0.6% growth in three months to January, which figure was revised down from a 0.7% increase.

Manufacturing production in the U.K. fell 0.5% in January, missing expectations for a 0.3% rise, after a 0.1% rise in December.

The decline was driven by lower output in the computer, electronic and optical sector. Output dropped by 9.5%, the biggest monthly decline since early 2002.

On a yearly basis, manufacturing production in the U.K. increased 1.9% in January, after a 2.6% rise in December. December's figure was revised up from a 2.4% gain.

Industrial production in the U.K. decreased 0.1% in January, missing forecasts of a 0.2% rise, after a 0.2% decline in December.

The U.K. oil and gas production rose 2.4% in January as production at North Sea oil and gas fields increased.

On a yearly basis, industrial production in the U.K. rose 1.3% in January, after a 0.8% gain in December. December's figure was revised up from a 0.5% rise.

The New Zealand dollar traded lower against the U.S. dollar ahead of the Reserve Bank of New Zealand's interest rate decision. Analysts expect interest rate to remain unchanged at 3.50%.

In the overnight trading session, the kiwi traded lower against the greenback in the absence of any major economic reports from New Zealand.

The Australian dollar traded lower against the U.S. dollar. In the overnight trading session, the Aussie traded lower against the greenback after the weak economic data from Australia. Home loans in Australia dropped 3.5% in January, missing expectations for a 1.9% decline, after a 2.7% increase in December.

The Melbourne Institute and Westpac Bank released its consumer sentiment index for Australia on late Tuesday. The consumer sentiment index for Australia fell 1.2% in March, after a 8.0% rise in February.

The Japanese yen traded mixed against the U.S. dollar. In the overnight trading session, the yen traded lower against the greenback. Japan's core machinery orders declined 1.7% in January, beating expectations for a 3.8% drop, after a 8.3% rise in December.

On a yearly basis, Japan's core machinery orders climbed 1.9% in January, after a 11.4% rise in December.

The National Institute of Economic and Social Research (NIESR) released its estimate of gross domestic product (GDP) for the U.K. on Wednesday. The GDP estimate rose by 0.6% in three months to February, after a 0.6% growth in three months to January, which figure was revised down from a 0.7% increase.

According to NIESR, the economy is expected to grow 2.9% in 2015 and 2.3% in 2016.

The St. Louis Fed President James Bullard said in an interview with the Financial Times on Wednesday that the Fed is already a "little bit too late" in the tightening of its monetary policy. He noted that inflation excluding oil prices is not far below the Fed's 2% target.

Bullard pointed out that recent weak U.S. economic data was likely due to cold winter.

The St. Louis Fed president does not have a vote on the Fed's policy committee.

The British Chambers of Commerce (BCC) upgraded its forecasts for the U.K. GDP (gross domestic product) on Wednesday. The upgrade was driven by stronger than expected improvements in household consumption and services.

The BCC predicts 2.7% GDP growth for 2015, up from the previous forecast of 2.6%.

The GDP growth in 2016 is expected to be 2.6%, up from a 2.4% rise.

The European Central Bank (ECB) President Mario Draghi said at a conference of economists and central bankers in Frankfurt on Wednesday that bond purchases should help to boost inflation and encourage investors to shift to riskier assets. He noted that quantitative easing was unconventional but "not unorthodox".

Draghi rejected criticism that the ECB should implement quantitative easing sooner. He pointed out that the ECB has introduced a negative rate on bank deposits parked at the ECB and has purchased covered bank bonds and asset-backed securities.

The ECB had started to purchase government bonds on Monday.

Economic calendar (GMT0):

(Time/ Region/ Event/ Period/ Previous/ Forecast/ Actual)

00:30 Australia Home Loans January +2.7% -1.9% -3.5%

05:30 China Retail Sales y/y February +11.9% +11.6% +10.7%

05:30 China Industrial Production y/y February +7.9% +7.7% +6.8%

05:30 China Fixed Asset Investment February +15.7% +15.1% +13.9%

06:30 France Non-Farm Payrolls (Finally) Quarter IV 0.0% 0.0% 0.0%

09:30 United Kingdom Industrial Production (MoM) January -0.2% +0.2% -0.1%

09:30 United Kingdom Industrial Production (YoY) January +0.8% +1.3%

09:30 United Kingdom Manufacturing Production (MoM) January +0.1% +0.3% -0.5%

09:30 United Kingdom Manufacturing Production (YoY) January +2.6% +1.9%

The U.S. dollar traded mixed against the most major currencies. There will be released no major U.S. economic reports on Wednesday.

The greenback remained supported by speculation that the Fed might start to raise its interest rate sooner than expected.

The euro traded lower against the U.S. dollar as concerns over Greece's further bailout policy and quantitative easing by the European Central Bank (ECB) weighed on the euro. The ECB had started to purchase government bonds on Monday.

The ECB President Mario Draghi said on Wednesday that bond purchases should help to boost inflation and encourage investors to shift to riskier assets. He noted that quantitative easing was unconventional but "not unorthodox".

The Eurogroup of euro zone finance ministers continued to discuss proposed Greek economic reforms.

The British pound traded lower against the U.S. dollar after the mostly weaker-than-expected data from the U.K. Manufacturing production in the U.K. fell 0.5% in January, missing expectations for a 0.3% rise, after a 0.1% rise in December.

The decline was driven by lower output in the computer, electronic and optical sector. Output dropped by 9.5%, the biggest monthly decline since early 2002.

On a yearly basis, manufacturing production in the U.K. increased 1.9% in January, after a 2.6% rise in December. December's figure was revised up from a 2.4% gain.

Industrial production in the U.K. decreased 0.1% in January, missing forecasts of a 0.2% rise, after a 0.2% decline in December.

The U.K. oil and gas production rose 2.4% in January as production at North Sea oil and gas fields increased.

On a yearly basis, industrial production in the U.K. rose 1.3% in January, after a 0.8% gain in December. December's figure was revised up from a 0.5% rise.

EUR/USD: the currency pair fell to $1.0593

GBP/USD: the currency pair declined to $1.5028

USD/JPY: the currency pair rose to Y121.63

The most important news that are expected (GMT0):

15:00 United Kingdom NIESR GDP Estimate February +0.7%

20:00 New Zealand RBNZ Interest Rate Decision 3.50% 3.50%

20:00 New Zealand RBNZ Rate Statement

20:05 New Zealand RBNZ Press Conference

23:50 Japan BSI Manufacturing Index Quarter I 8.1 5.7

EUR/USD

Offers 1.0680 1.0700 1.0720 1.0735 1.0750 1.0780 1.0800 1.0820-25 1.0845-50

Bids 1.0635 1.0620 1.0600 1.0585 1.0565 1.0550

GBP/USD

Offers 1.5100 1.5120-25 1.5150 1.5180 1.5200 1.5220

Bids 1.5045-50 1.5025 1.5000 1.4985 1.4965 1.4950

EUR/JPY

Offers 129.60 129.80 130.00 130.20 130.80 130.80 131.00 131.30

Bids 129.00 128.85 128.50 128.30 128.00

USD/JPY

Offers 121.50 121.80 122.00-10 122.35 122.50 122.80 123.00

Bids 121.20 121.00 120.80 120.60-65 1.2025-30 120.00

EUR/GBP

Offers 0.7100 0.7120 0.7145-50 0.7185 0.7200 0.7220-25 0.7245-50

Bids 0.7050 0.7035 0.7020 0.7000 0.6985

AUD/USD

Offers 0.7640 0.7660 0.7680 0.7700 0.7740 0.7760

Bids 0.7600 0.7585 0.7565 0.7550 0.7530 0.7500

The U.K. Office for National Statistics released manufacturing and industrial production figures on Wednesday. Manufacturing production in the U.K. fell 0.5% in January, missing expectations for a 0.3% rise, after a 0.1% rise in December.

The decline was driven by lower output in the computer, electronic and optical sector. Output dropped by 9.5%, the biggest monthly decline since early 2002.

On a yearly basis, manufacturing production in the U.K. increased 1.9% in January, after a 2.6% rise in December. December's figure was revised up from a 2.4% gain.

Industrial production in the U.K. decreased 0.1% in January, missing forecasts of a 0.2% rise, after a 0.2% decline in December.

The U.K. oil and gas production rose 2.4% in January as production at North Sea oil and gas fields increased.

On a yearly basis, industrial production in the U.K. rose 1.3% in January, after a 0.8% gain in December. December's figure was revised up from a 0.5% rise.

Data on Industrial Production, Retail Sales and Fixed Asset Investment all missed forecasts as stimulus measures by the Peoples Bank of China effects are limited so far and do not boost the world's second largest economy enough. The data fuels concerns over economic growth and that further measures will have to be taken by the PBoC.

Data for January and February were combined as a consequence of the long Lunar New Year public holiday.

Growth in Industrial Production had the lowest reading since 2009. Industrial Production grew +6.8% year on year, below estimates of an increase of +7.7%. Last year's reading was +7.9%.

Retail Sales grew +10.7% in February compared to +11.9% last year. Analysts expected an increase of +7.7%.

Fixed Asset Investment grew +13.9%, below the estimated +15.1%.

BLOOMBERG

Draghi Says ECB Measures Can And Will Restore Inflation to Goal

(Bloomberg) -- Mario Draghi said the European Central Bank's expanded asset purchases will succeed in pushing inflation in the euro area back toward its goal.

"We can deploy and we will deploy monetary policy in a way that can and will stabilize inflation in line with our objective," the ECB president said at a conference in Frankfurt, three days into his 1.1 trillion-euro ($1.2 trillion) bond-buying program. "Our monetary policy is certainly supporting the recovery."

In his first public appearance since QE started, Draghi can point to falling yields on government debt and a slide in the euro as signs that the program to buy 60 billion euros a month of sovereign and private-sector debt is making a mark. What he can't yet show is whether banks and companies will respond by putting the fresh cash to work in the real economy.

Source: http://www.bloomberg.com/news/articles/2015-03-11/draghi-says-ecb-measures-can-and-will-restore-inflation-to-goal

REUTERS
Kuwait expects OPEC to continue policy beyond June

(Reuters) - OPEC is likely to maintain its production policy at a meeting in June, Kuwait's OPEC governor said on Tuesday in the first public comment on what would be a crucial decision to determine the direction of global oil prices in the second half of the year.

Many OPEC oil ministers including Saudi Arabia's Ali al-Naimi have defended the organization's November decision not to cut production but instead defend market share and curtail the output of more expensive producers such as the United States.

The accord sent oil prices below $50 per barrel, extending a sharp decline that began in June amid a global glut of crude.

Source: http://www.reuters.com/article/2015/03/10/us-eurozone-greece-varoufakis-idUSKBN0M60MN20150310

BLOOMBERG

Japan Still Far From Done Cheapening Yen, Survey Suggests

(Bloomberg) -- Japan's central bank is far from done driving down the yen if it wants to secure a 2 percent inflation target next year, a survey of economists by Bloomberg News shows.

The median estimate of 27 economists in a survey March 5-10 shows that the yen needs to fall to 140 per dollar, a level last seen in 1998, to help the Bank of Japan meet its goal. Even after a 23 percent decline since Governor Haruhiko Kuroda began record monetary stimulus, that means a further 13 percent drop from the current level.

Kuroda and his colleagues are projected to step up their stimulus later this year, once it becomes clear that it's unlikely to achieve a 2 percent increase in consumer prices in or around the 12 months starting in April, a separate survey shows. What's unclear is whether politicians, Japan's trading partners and the small companies hurt by a weaker yen would tolerate actions that sent the yen down so much.

Source: http://www.bloomberg.com/news/articles/2015-03-11/japan-still-far-from-done-cheapening-yen-survey-suggests-i747j39o

(Time/ Region/ Event/ Period/ Previous/ Forecast/ Actual

00:30 Australia Home Loans January +2.7% -1.9% -3.5%

05:30 China Retail Sales y/y February +11.9% +11.6% +10.7%

05:30 China Industrial Production y/y February +7.9% +7.7% +6.8%

05:30 China Fixed Asset Investment February +15.7% +15.1% +13.9%

06:30 France Non-Farm Payrolls (Finally) Quarter IV 0.0% 0.0% 0.0%

The U.S. dollar traded mixed against its major peers on Wednesday, still supported by speculations on a rate hike in June. Job openings climbed to 4.998 million in January from 4.877 million in December. That was the highest level since January 2001. Wholesale inventories in the U.S. rose 0.3% in January, missing expectations for a flat reading. Inventories of durable goods increased 0.6% in January, while inventories of non-durable goods fell by 0.1%.

The euro and sterling stabilized after yesterday's plunge with sterling slightly positive and the euro currently at USD1.0673. Quantitative Easing and concerns over Greece weigh on the single currency.

The Australian dollar declined against the greenback to a new five-week low at USD0.7586 currently quoted at USD0.7604. The Westpac Consumer Confidence index declined by -1.2% for the month of March. Assistant Governor of the RBA Christopher Kent said that the record low interest rate of 2.25% together with other steps taken by the bank should help to boost economic growth, sustain activity in the housing sector and support household wealth. Home Loans declined by -3.5% in January, more than the expected -1.9%.

Chinese Retail Sales rose less-than expected +10.7%. Analyst expected +11.6% in February compared to +11.9% in January. Industrial Production in the second largest economy rose +6.8% year on year, below the estimated growth of +7.7%. Fixed Asset Investment came in at +13.9%, also below expectations of an increase of 15.1%.

New Zealand's dollar lost ground against the greenback in the absence any major economic reports from New Zealand. Today markets await the RBNZ Interest Rate Decision and the following Rate Statement at 20:00 GMT. At 21:45 GMT data on Food Prices are to be reported.

The Japanese yen traded lower against the greenback on Wednesday but above the new 8-year low at USD122.02 set yesterday. Core Machinery Orders for January declined less-than-expected in January with a reading of -1.7% compared to +8.3% in the previous month and forecasts of a deline of -3.8%.

EUR/USD: the euro lower higher against the greenback

(time / country / index / period / previous value / forecast)

09:30 United Kingdom Industrial Production (MoM) January -0.2% +0.2%

09:30 United Kingdom Industrial Production (YoY) January +0.5%

09:30 United Kingdom Manufacturing Production (MoM) January +0.1% +0.3%

09:30 United Kingdom Manufacturing Production (YoY) January +2.4%

14:30 U.S. Crude Oil Inventories March +10.3

15:00 United Kingdom NIESR GDP Estimate February +0.7%

18:00 U.S. Federal budget February -17.5 -187.3

20:00 New Zealand RBNZ Interest Rate Decision 3.50% 3.50%

20:00 New Zealand RBNZ Rate Statement

20:05 New Zealand RBNZ Press Conference

21:45 New Zealand Food Prices Index, m/m February +1.3%

21:45 New Zealand Food Prices Index, y/y February +1.2%

23:50 Japan Tertiary Industry Index January -0.3% +0.6%

23:50 Japan BSI Manufacturing Index Quarter I 8.1 5.7

EUR / USD

Resistance levels (open interest**, contracts)

$1.0883 (1167)

$1.0831 (301)

$1.0763 (178)

Price at time of writing this review: $1.0681

Support levels (open interest**, contracts):

$1.0646 (2100)

$1.0627 (3647)

$1.0605 (1472)

Comments:

- Overall open interest on the CALL options with the expiration date April, 2 is 46431 contracts, with the maximum number of contracts with strike price $1,1500 (2711);

- Overall open interest on the PUT options with the expiration date April, 2 is 55718 contracts, with the maximum number of contracts with strike price $1,0600 (5870);

- The ratio of PUT/CALL was 1.20 versus 1.35 from the previous trading day according to data from March, 10

GBP/USD

Resistance levels (open interest**, contracts)

$1.5304 (965)

$1.5207 (875)

$1.5111 (1672)

Price at time of writing this review: $1.5068

Support levels (open interest**, contracts):

$1.4990 (1608)

$1.4893 (1151)

$1.4796 (1231)

Comments:

- Overall open interest on the CALL options with the expiration date April, 2 is 18824 contracts, with the maximum number of contracts with strike price $1,5100 (1672);

- Overall open interest on the PUT options with the expiration date April, 2 is 24367 contracts, with the maximum number of contracts with strike price $1,5050 (2381);

- The ratio of PUT/CALL was 1.29 versus 1.35 from the previous trading day according to data from March, 10

* - The Chicago Mercantile Exchange bulletin (CME) is used for the calculation.

** - Open interest takes into account the total number of option contracts that are open at the moment.

(pare/closed(GMT +2)/change, %)

EUR/USD $1,0679 -1,62%

GBP/USD $1,5052 -0,50%

USD/CHF Chf0,9992 +1,37%

USD/JPY Y121,15 -0,04%

EUR/JPY Y129,39 -1,65%

GBP/JPY Y182,37 -0,53%

AUD/USD $0,7623 -1,05%

NZD/USD $0,7270 -1,14%

USD/CAD C$1,2685 +0,66%

(time / country / index / period / previous value / forecast)

00:30 Australia Home Loans January +2.7% -1.9%

02:00 China New Loans February 1470 755

05:30 China Retail Sales y/y February +11.9% +11.6%

05:30 China Industrial Production y/y February +7.9% +7.7%

05:30 China Fixed Asset Investment February +15.7% +15.1%

06:30 France Non-Farm Payrolls (Finally) Quarter IV 0.0% 0.0%

09:30 United Kingdom Industrial Production (MoM) January -0.2% +0.2%

09:30 United Kingdom Industrial Production (YoY) January +0.5%

09:30 United Kingdom Manufacturing Production (MoM) January +0.1% +0.3%

09:30 United Kingdom Manufacturing Production (YoY) January +2.4%

14:30 U.S. Crude Oil Inventories March +10.3

15:00 United Kingdom NIESR GDP Estimate February +0.7%

18:00 U.S. Federal budget February -17.5 -187.3

20:00 New Zealand RBNZ Interest Rate Decision 3.50% 3.50%

20:00 New Zealand RBNZ Rate Statement

20:05 New Zealand RBNZ Press Conference

21:45 New Zealand Food Prices Index, m/m February +1.3%

21:45 New Zealand Food Prices Index, y/y February +1.2%

23:50 Japan Tertiary Industry Index January -0.3% +0.6%

23:50 Japan BSI Manufacturing Index Quarter I 8.1 5.7