The Swiss National Bank (SNB) released its Quarterly Bulletin. The central bank expects the Swiss GDP to grow under 1% this year, and unemployment is expected to rise. The SNB noted that GDP could decline in the first quarter of 2015.

According to Quarterly Bulletin, consumer price inflation is expected to be - 1.3% in six to twelve months. Inflation forecasts for the next three to five years were downgraded to 0.5% from 1.1%.

The European Central Bank (ECB) Chief Economist Peter Praet said in London on Wednesday that politicians and monetary authorities should show "verbal discipline" about the crisis in Greece. He also said that the Eurozone has "a lack of crisis preparation".

Praet pointed out that quantitative easing by the ECB was implemented at the optimum time.

The ECB chief economist noted that there is "a cyclical recovery" in the Eurozone.

The U.S. dollar traded mixed to higher against the most major currencies despite the weaker-than-expected U.S. durable goods orders data. The U.S. durable goods orders dropped 1.4% in February, missing expectations for a 0.2% increase, after a 2.0% rise in January. January's figure was revised down from a 2.8% increase.

The U.S. durable goods orders excluding transportation declined 0.4% in February, missing expectations for a 0.4% gain, after a 0.7% decrease in January. January's figure was revised down from a 0.3% gain.

The euro traded lower against the U.S. dollar. German Ifo business climate index climbed to 107.9 in March from 106.8 in February, exceeding expectations for a rise to 107.4. It was the highest level since July 2014.

The better sentiment was supported by ECB's quantitative easing.

The British pound traded lower against the U.S. dollar. The number of mortgage approvals increased to 37,300 in February from 36,500 in January, exceeding expectations for a rise to 36,900. January's figure was revised up from 36,400.

The Swiss franc traded mixed against the U.S. dollar. The Swiss National Bank (SNB) released its Quarterly Bulletin. The central bank expects the Swiss GDP to grow under 1% this year, and unemployment is expected to rise.

Switzerland's UBS consumption indicator increased to 1.19 points in February from 1.11 points in January. January's figure was revised down from 1.24 points.

The Canadian dollar traded lower against the U.S. dollar ahead of a speech by Governing Council Member Lane.

The New Zealand dollar traded lower against the U.S. dollar. In the overnight trading session, the kiwi traded lower against the greenback after the weaker-than-expected trade data from New Zealand. New Zealand's trade surplus climbed to NZ$50 million in February from NZ$30 million in January. January's figure was revised down from a surplus of NZ$56 million. Analysts had expected a surplus of NZ$355 million.

The Australian dollar traded lower against the U.S. dollar. In the overnight trading session, the Aussie traded lower against the greenback after Reserve Bank of Australia's (RBA) Financial Stability Review. The central bank said that it expects lower mortgage rates to boost housing demand further, and added that it will monitor closely the housing lending.

The RBA pointed out that risks in the non-financial business sector are low.

The Japanese yen traded mixed against the U.S. dollar. In the overnight trading session, the yen traded mixed against the greenback after comments by the Bank of Japan (BoJ) Deputy Governor Kikuo Iwata. He said that it is difficult to achieve 2% inflation within two years due to falling oil prices and a bigger-than-expected hit on spending caused by last year's sales tax hike.

The European Central Bank (ECB) raised the ceiling for Emergency Liquidity Assistance (ELA) to Greek banks to more than €71 billion, according to a person familiar with the decision.

The previous limit was €69.8 billion.

The European Central Bank (ECB) has instructed Greece's banks not to purchases Greek government bonds, according to people familiar with the matter.

The new restriction from the ECB was approved by the central bank's governing council.

The Reserve Bank of Australia (RBA) said in its Financial Stability Review that it expects lower mortgage rates to boost housing demand further. The central bank added that it will monitor closely the housing lending.

The RBA pointed out that risks in the non-financial business sector are low.

The Asian Development Bank (ADB) said it expects that Emerging Asian economies will perform strongly this year due to lower global commodity prices and recovery in major industrial economies. The ADB forecasted 6.3% growth for Emerging Asian economies in 2015 as well as 2016.

According to the ADB, China is expected to expand by 7.2% in 2015 and 7.0% in 2016.

India is expected to rise by 7.8% in the financial year 2015 ending March 2016 and 8.2% in the fiscal year 2016 ending March 2017.

According to the Asahi newspaper, the Bank of Japan (BoJ) Deputy Governor Kikuo Iwata said that it is difficult to achieve 2% inflation within two years due to falling oil prices and a bigger-than-expected hit on spending caused by last year's sales tax hike. But he added that he expected inflation to achieve 2% target at or around the fiscal year beginning in April due to wage rise and economic recovery in Japan.

The Bank of France reported on Tuesday that its net profit plunged to €2.07 billion in 2014 from €2.44 billion in 2013. The decline was driven by a cut in interest rates and as banks borrowed less from the central bank.

"This change results mainly from monetary policy decisions taken during the year," the Bank of France noted.

Stimulus measures by the European Central Bank didn't have a significant impact on the results.

USD/JPY 118.50 (USD 400m) 120.00 (USD 1.5bln) 121.00 (USD 700m)

EUR/USD 1.0800 (EUR 1.6bln) 1.0900 (EUR 2.3bln) 1.1000 (EUR 470m) 1.1050 (EUR 1.3bln)

USD/CAD 1.2440-55 (USD 440m) 1.2550 (USD 465m) 1.2570-75 (USD 270m)

The Bank of France governor Christian Noyer said on Tuesday that the central bank purchased 18 billion euros of bonds under the European Central Bank's bond-buying programme. The Bank of France bought 5.7 billion euros of French government bonds, 1.4 billion euros of supranational bonds and 11 billion euros of covered bonds.

The U.S. Commerce Department released durable goods orders data on Wednesday. The U.S. durable goods orders dropped 1.4% in February, missing expectations for a 0.2% increase, after a 2.0% rise in January. January's figure was revised down from a 2.8% increase.

The decline was driven by a lower demand for products made in the U.S. A decline in transportation orders, defence and civilian aircraft weighed on durable goods orders.

The U.S. durable goods orders excluding transportation declined 0.4% in February, missing expectations for a 0.4% gain, after a 0.7% decrease in January. January's figure was revised down from a 0.3% gain.

Economic calendar (GMT0):

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

00:30 Australia RBA Financial Stability Review

07:00 Switzerland UBS Consumption Indicator February 1.11 Revised From 1.24 1.19

09:00 Germany IFO - Business Climate March 106.8 107.4 107.9

09:00 Germany IFO - Current Assessment March 111.3 112.0

09:00 Germany IFO - Expectations March 102.5 103.9

09:30 United Kingdom BBA Mortgage Approvals February 36.5 Revised From 36.4 36.9 37.3

10:30 U.S. FOMC Member Charles Evans Speaks

12:30 U.S. Durable Goods Orders February +2.0% Revised From +2.8% +0.2% -1.4%

12:30 U.S. Durable Goods Orders ex Transportation February -0.7% Revised From +0.3% +0.4% -0.4%

The U.S. dollar traded lower against the most major currencies after the weaker-than-expected U.S. durable goods orders data. The U.S. durable goods orders dropped 1.4% in February, missing expectations for a 0.2% increase, after a 2.0% rise in January. January's figure was revised down from a 2.8% increase.

The U.S. durable goods orders excluding transportation declined 0.4% in February, missing expectations for a 0.4% gain, after a 0.7% decrease in January. January's figure was revised down from a 0.3% gain.

The euro rose against the U.S. dollar after the better-than-expected German Ifo index. German Ifo business climate index climbed to 107.9 in March from 106.8 in February, exceeding expectations for a rise to 107.4. It was the highest level since July 2014.

The better sentiment was supported by ECB's quantitative easing.

The British pound traded higher against the U.S. dollar after the better-than-expected number of mortgage approvals from the U.K. The number of mortgage approvals increased to 37,300 in February from 36,500 in January, exceeding expectations for a rise to 36,900. January's figure was revised up from 36,400.

The Swiss franc traded higher against the U.S. dollar. Switzerland's UBS consumption indicator increased to 1.19 points in February from 1.11 points in January. January's figure was revised down from 1.24 points.

EUR/USD: the currency pair rose to $1.1014

GBP/USD: the currency pair increased to $1.4953

USD/JPY: the currency pair fell to Y119.23

The most important news that are expected (GMT0):

19:45 Canada Gov Council Member Lane Speaks

EUR/USD

Offers 1.0980 1.1000 1.1025-30 1.1045-50 1.1065 1.1080 1.1100

Bids 1.0925-30 1.0900 1.0880 1.0860 1.0825.30 1.0800

GBP/USD

Offers 1.4900 1.4930 1.4950 1.4975 1.5000 1.5020-25 1.5040 1.5065

Bids 1.4845-50 1.4825 1.4800 1.4780 1.47601.4730 1.4700

EUR/JPY

Offers 131.50 131.80 132.00 132.30 132.50

Bids 130.80 130.50 130.00 129.80 129.40 129.00

USD/JPY

Offers 119.80 120.00 120.20-25 120.50 120.80 121.00

Bids 119.50-55 119.30 119.00 118.80 118.60 118.30 118.00

EUR/GBP

Offers 0.7380 0.7400 0.7420 0.7440-45 0.7480

Bids 0.7345-50 0.7330 0.7320 0.7300 0.7285 0.7265 0.7250

AUD/USD

Offers 0.7900 0.7930-35 0.7950 0.7980 0.8000

Bids 0.7850 0.7825 0.7800 0.7780-85 0.7750 0.7725 0.7700

The Chicago Fed President Charles Evans said in London on Wednesday that there is no reason to hike interest rate until 2016 due to low inflation. He added that it is better to wait until it is clear that inflation will reach the Fed's 2% target.

Evans believes that inflation will not reach the Fed's 2% until 2018. He noted that a stronger U.S. dollar is the downside risk to inflation. "The stronger dollar presents a clear disinflationary pressure through its influence on U.S. import prices", the Chicago Fed president said.

Evans is a voting member of the Federal Open Market Committee this year.

Today data on Mortgage Approvals came in above estimates easing concerns over U.K.'s housing sector. The housing market is supported by record low interest rates.

The number of new mortgages rose to 37,300 in February, a 5-month high, from revised 36,500 in January. Analysts expected an increase to 36,900.

USD/JPY 118.50 (USD 400m) 120.00 (USD 1.5bln) 121.00 (USD 700m)

EUR/USD 1.0800 (EUR 1.6bln) 1.0900 (EUR 2.3bln) 1.1000 (EUR 470m) 1.1050 (EUR 1.3bln)

USD/CAD 1.2440-55 (USD 440m) 1.2550 (USD 465m) 1.2570-75 (USD 270m)

The business climate in Eurozone's largest economy rose more-than-expected and is a strong sign that the economic recovery is on track and the QE program of the ECB starts to have positive effects. The index increased for a fifth consecutive month. A day earlier data showed that growth in manufacturing and services accelerated.

The IFO index is based on a survey of 7,000 executives who evaluate the relative level of doing business and expectations for the next 6 months. Companies are confident as the weak euro, low financing costs and robust growth of the U.S. economy

The IFO - Business Climate for the month of March improved from 106.8 to 107.9 beating estimates of an increase to 107.4. Data on the IFO - Current Assessment came in at 112.0, compared to a previous reading of 111.3. IFO - Expectations rose from 102.5 to 103.9.

BLOOMBERG

The 20 Million Barrels of Pure Profit Sitting in U.S. Oil Tanks

(Bloomberg) -- Just as Wall Street says the U.S. is running out of room to store oil, it turns out there's another 20 million barrels of empty space.

Where? Right at the top of the tanks.

A supply glut has dragged U.S. crude for May delivery almost $10 a barrel below contracts a year out. This market structure, known as contango, has encouraged traders to shove the most oil in 80 years into storage so they can sell it for more in the future. The problem is, tanks are filling up, according to banks from Bank of America Corp. to Citigroup Inc. and Goldman Sachs Group Inc.

Source: http://www.bloomberg.com/news/articles/2015-03-24/there-s-pure-profit-sitting-at-the-top-of-u-s-crude-oil-tanks

REUTERS
Japanese investors' mega buying spree overseas keeps yen under pressure

(Reuters) - Purchases of foreign stocks and bonds by Japan's giant pension funds and other big investors in 2015 could be their highest for at least a decade, if they keep pace with the $42 billion splurged during the first two months.

At that rate their annual net sales of yen would be over 30 trillion, the most since the government started keeping records a decade ago, and almost as much as the previous five years combined.

That will add to pressure on the yen, which earlier this month struck 122 per dollar - its lowest level since July 2007.

Source: http://www.reuters.com/article/2015/03/24/markets-japan-outflows-idUSL3N0WL1QZ20150324

BLOOMBERG

Dollar Revives With Volatility as BofA Keeps Euro Parity Call

(Bloomberg) -- Bank of America Corp. is keeping faith that the dollar will rise to parity with the euro this year amid signs the U.S. currency has found its feet following the worst weekly slide in three years.

The greenback remained stronger after gaining Tuesday as the impact of the Federal Reserve's surprise reduction in interest-rate forecasts waned and investors' focus turned to U.S. economic data. The Bloomberg Dollar Spot Index has weakened almost 3 percent from a decade high reached March 13, while a gauge of expected currency swings has jumped by more than 20 percent over the past month.

"This trend of U.S. dollar strength is not going away any time soon," Adarsh Sinha, head of Asia-Pacific Group-of-10 foreign-exchange strategy at Bank of America in Hong Kong, said at a media briefing Wednesday. As long as the Fed raises rates this year, monetary-policy divergence will drive the dollar higher against its major peers, he said.

Source: http://www.bloomberg.com/news/articles/2015-03-24/dollar-shows-revival-signs-as-data-dependence-spurs-volatility

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

00:30 Australia RBA Financial Stability Review

07:00 Switzerland UBS Consumption Indicator February 1.11 1.19

The U.S. dollar is trading mixed against its major peers after a mixed set of data reported yesterday. The U.S. consumer price inflation rose 0.2% in February, in line with expectations, after a 0.7% decline in January. The increase was driven by higher gasoline prices. On a yearly basis, the U.S. consumer price index climbed to zero in February from -0.1% in January. Analysts had expected the index to remain unchanged at -0.1%. On a yearly basis, the U.S. consumer price index excluding food and energy climbed to 1.7% in February from 1.6% in January. Analysts had expected the index to remain unchanged at 1.6%. Preliminary data on the U.S. manufacturing purchasing managers' index (PMI) rose to 55.3 in March from 55.1 in February, beating expectations for a decline to 54.9.

Today market participants will closely watch FOMC Member Charles Evans comments and Durable Goods Orders.

The euro is trading almost flat against the greenback after yesterday's decline. Yesterday the single currency reached an intra-day high of USD1.1029 on solid PMI data from the Eurozone before reversing gains.

The Australian dollar declined against the U.S. dollar. At 00:30 the RBA published its biannual Financial Stability Review. The bank said that housing picked up as mortgage rates followed a cut to record lows of the benchmark interest rate to 2.25% in February and warned that there is a risk of a large re-pricing in the commercial property sector. Australia's labour market is weakening due to lower investments in the mining sector which could lead to more household stress - currently the unemployment rate is at a record high of 6%. The Australian banks continue to perform well.

New Zealand's dollar lost against the greenback during the Asian session in the absence of any major data from the region. Yesterday data on New Zealand's Trade Balance came in at a surplus of 50 million in February, compared to revised NZD33 million in January (revised down from NZD56 million). Analysts expected a surplus of NZD392 million.

The Japanese yen traded almost flat against the greenback on Wednesday, a light data day for the Asian region.

EUR/USD: the euro traded lower against the greenback

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

09:00 Germany IFO - Business Climate March 106.8 107.4

09:00 Germany IFO - Current Assessment March 111.3

09:00 Germany IFO - Expectations March 102.5

09:30 United Kingdom BBA Mortgage Approvals February 36.4 36.9

10:30 U.S. FOMC Member Charles Evans Speaks

12:30 U.S. Durable Goods Orders February +2.8% +0.2%

12:30 U.S. Durable Goods Orders ex Transportation February 0.0% Revised From +0.3% +0.4% 14:00 SwitzerlandSNB Quarterly Bulletin Quarter I

14:30 U.S. Crude Oil Inventories March +9.6

19:45 Canada Gov Council Member Lane Speaks

EUR / USD

Resistance levels (open interest**, contracts)

$1.1132 (2161)

$1.1062 (3833)

$1.0988 (2431)

Price at time of writing this review: $1.0916

Support levels (open interest**, contracts):

$1.0822 (4266)

$1.0757 (3194)

$1.0678 (2962)

Comments:

- Overall open interest on the CALL options with the expiration date April, 2 is 65976 contracts, with the maximum number of contracts with strike price $1,1000 (3833);

- Overall open interest on the PUT options with the expiration date April, 2 is 74785 contracts, with the maximum number of contracts with strike price $1,0600 (5495);

- The ratio of PUT/CALL was 1.13 versus 1.12 from the previous trading day according to data from March, 24

GBP/USD

Resistance levels (open interest**, contracts)

$1.5102 (1661)

$1.5004 (1367)

$1.4908 (1514)

Price at time of writing this review: $1.4853

Support levels (open interest**, contracts):

$1.4791 (1295)

$1.4695 (2011)

$1.4597 (1470)

Comments:

- Overall open interest on the CALL options with the expiration date April, 2 is 26591 contracts, with the maximum number of contracts with strike price $1,5100 (1661);

- Overall open interest on the PUT options with the expiration date April, 2 is 28823 contracts, with the maximum number of contracts with strike price $1,5050 (2327);

- The ratio of PUT/CALL was 1.08 versus 1.11 from the previous trading day according to data from March, 24

* - 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/JPY $1,0918 -0,24%

GBP/USD $1,4844 -0,73%

USD/CHF Chf0,9583 -0,79%

USD/JPY Y119,72 +0,02%

EUR/JPY Y130,72 -0,22%

GBP/JPY Y177,71 -0,72%

AUD/USD $0,7873 -0,03%

NZD/USD $0,7640 -0,17%

USD/CAD C$1,2498 -0,14%