• Expects unemployment to remain below 5 pct for two years

• Backing for starting to trim bond portfolio this year

• U.S economic expansion sound; weak Q1 transitory

EURUSD: 1.0600-10 (EUR 980m) 1.0700 (2bln) 1.0730-40 (910m) 1.0775 (528m) 1.0790 (480m) 1.0800 (390m) 1.0820-30 (1.04bln) 1.0850 (540m) 1.0900 (330m)

USDJPY: 110.00 (USD 485m) 110.25 (380m) 110.50 (320m) 111.00-10 (1.85bln) 111.85-90 (575m) 112.00 (1.05bln)) 112.50-60 (570m)

GBPUSD: 1.2400 (GBP 240m) 1.2430 (210m) 1.2450 (435m) 1.2550 (185m) 1.2600 (390m)

EURGBP 0.8500 (EUR 555m) 0.8650 (190m)

USDCHF 0.9880-90 ( USD 420m) 0.9950 (215m) 1.0075 (250m)

AUDUSD: 0.7500 (AUD 374m) 0.7550 (433m) 0.7610 (440m) 0.7630 (205m) 0.7645-55 (650m) 0.7680-90 (260m)

USDCAD 1.3300 (USD 260m) 1.3350 (183m) 1.3400 (490m)

EURJPY 119.50 (EUR 440m) 120.00 (295m)

The Industrial Product Price Index (IPPI) edged up 0.1% in February, primarily due to higher prices for meat, fish and dairy products and primary non-ferrous metal products. The Raw Materials Price Index (RMPI) increased 1.2%, mainly as a result of higher prices for animals and animal products.

The IPPI (+0.1%) increased for a sixth consecutive month in February, following a 0.6% gain the previous month. Of the 21 major commodity groups, 8 were up, 10 were down and 3 were unchanged.

The growth in the IPPI was largely attributable to higher prices for meat, fish and dairy products (+1.5%) and primary non-ferrous metal products (+1.5%).

In the week ending March 25, the advance figure for seasonally adjusted initial claims was 258,000, a decrease of 3,000 from the previous week's unrevised level of 261,000. The 4-week moving average was 254,250, an increase of 7,750 from the previous week's unrevised average of 246,500.

The advance seasonally adjusted insured unemployment rate was 1.5 percent for the week ending March 18, an increase of 0.1 percentage point from the previous week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending March 18 was 2,052,000, an increase of 65,000 from the previous week's revised level

Real gross domestic product (GDP) increased at an annual rate of 2.1 percent in the fourth quarter of 2016, according to the "third" estimate released by the Bureau of Economic Analysis. In the third quarter of 2016, real GDP increased 3.5 percent.

The GDP estimate released today is based on more complete source data than were available for the "second" estimate issued last month. In the second estimate, the increase in real GDP was 1.9 percent.

With this third estimate for the fourth quarter, the general picture of economic growth remains largely the same; personal consumption expenditures (PCE) increased more than previously estimated. The PCE price index increased 2.0 percent, compared with an increase of 1.5 percent. Excluding food and energy prices, the PCE price index increased 1.3 percent, compared with an increase of 1.7 percent

The inflation rate in Germany as measured by the consumer price index is expected to be 1.6% in March 2017. Based on the results available so far, the Federal Statistical Office (Destatis) also reports that the consumer prices are expected to increase by 0.2% on February 2017.

In March 2017, the harmonised index of consumer prices for Germany, which is calculated for European purposes, is expected to increase by 1.5% year on year and 0.1% on February 2017.

The final results for March 2017 will be released on 13 April 2017.

In March, the Economic Sentiment Indicator (ESI) continued following the broad sideways movement it had embarked upon at the beginning of the year, both in the euro area (-0.1 points to 107.9) and the EU (+0.2 points to 109.1). March thus constitutes the third consecutive month of a broadly unchanged ESI.

EURUSD: 1.0600-10 (EUR 980m) 1.0700 (2bln) 1.0730-40 (910m) 1.0775 (528m) 1.0790 (480m) 1.0800 (390m) 1.0820-30 (1.04bln) 1.0850 (540m) 1.0900 (330m)

USDJPY: 110.00 (USD 485m) 110.25 (380m) 110.50 (320m) 111.00-10 (1.85bln) 111.85-90 (575m) 112.00 (1.05bln)) 112.50-60 (570m)

GBPUSD: 1.2400 (GBP 240m) 1.2430 (210m) 1.2450 (435m) 1.2550 (185m) 1.2600 (390m)

EURGBP 0.8500 (EUR 555m) 0.8650 (190m)

USDCHF 0.9880-90 ( USD 420m) 0.9950 (215m) 1.0075 (250m)

AUDUSD: 0.7500 (AUD 374m) 0.7550 (433m) 0.7610 (440m) 0.7630 (205m) 0.7645-55 (650m) 0.7680-90 (260m)

USDCAD 1.3300 (USD 260m) 1.3350 (183m) 1.3400 (490m)

EURJPY 119.50 (EUR 440m) 120.00 (295m)

The estimated annual inflation in March 2017 is 2.3%, according to the advance indicator prepared by INE. This indicator provides an advance of the CPI which, if confirmed, would decrease of seven tenths in its annual rate, since in the month of February this variation was 3.0%.

This behavior highlights the drop in the prices of fuels (diesel and Gasoline) compared to the increase they experienced last year, as well as the Prices of electricity. On the other hand, the annual variation of the leading indicator of the HICP is in March 2.1%.

• Expect economy to continue to grow by 2.5% each year on average over next few yrs, whilst debt-to-gdp ratio is expected to fall this year

• BA2 rating of Croatia balances weak fiscal position with high incomes and positive growth

• Croatia's rating continues to be constrained at BA2 level by structural weaknesses in economy, given absence of a structural reform agenda

• QE was effective in spurring growth but has been made more powerful by combining it with yield curve control

• Appropriate to continue powerful monetary easing as inflation still distant from 2 pct

• Japan's economic recovery gaining momentum reflecting improvements in overseas economies

• The era of huge sums being paid to the EU is coming to an end

• We're not expecting to have to pay anything like the 51 bln gbp bill suggested in media reports

The Housing Industry Association (HIA) reported that its monthly survey of large-volume builders showed new home sales nudged up 0.2% in February, following a drop of 2.2% the previous month.

After a period of relative instability, Australia's housing market is expected to stabilize throughout the year as government grant programs encourage more homebuyers to enter the market. For decades, the government has assisted residents of mineral-rich Western Australia in purchasing homes through a low-deposit loan program.

EUR/USD

Resistance levels (open interest**, contracts)

$1.0908 (734)

$1.0882 (1037)

$1.0846 (450)

Price at time of writing this review: $1.0759

Support levels (open interest**, contracts):

$1.0709 (631)

$1.0668 (518)

$1.0618 (752)

Comments:

- Overall open interest on the CALL options with the expiration date June, 9 is 43983 contracts, with the maximum number of contracts with strike price $1,1450 (3940);

- Overall open interest on the PUT options with the expiration date June, 9 is 47712 contracts, with the maximum number of contracts with strike price $1,0350 (3809);

- The ratio of PUT/CALL was 1.08 versus 1.10 from the previous trading day according to data from March, 29

GBP/USD

Resistance levels (open interest**, contracts)

$1.2710 (885)

$1.2614 (337)

$1.2518 (810)

Price at time of writing this review: $1.2435

Support levels (open interest**, contracts):

$1.2383 (585)

$1.2287 (250)

$1.2190 (529)

Comments:

- Overall open interest on the CALL options with the expiration date June, 9 is 15496 contracts, with the maximum number of contracts with strike price $1,3000 (1195);

- Overall open interest on the PUT options with the expiration date June, 9 is 17623 contracts, with the maximum number of contracts with strike price $1,1500 (3056);

- The ratio of PUT/CALL was 1.14 versus 1.15 from the previous trading day according to data from March, 29

* - 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 $1,0767 -0,42%

GBP/USD $1,2437 -0,15%

USD/CHF Chf0,996 +0,40%

USD/JPY Y111,00 -0,05%

EUR/JPY Y119,51 -0,49%

GBP/JPY Y138,05 -0,20%

AUD/USD $0,7667 +0,44%

NZD/USD $0,7038 +0,34%

USD/CAD C$1,3327 -0,39%

00:00 Australia HIA New Home Sales, m/m February -2.2%

07:00 Switzerland KOF Leading Indicator March 107.2 106

09:00 Eurozone Industrial confidence March 1.3 1

09:00 Eurozone Consumer Confidence (Finally) March -6.2 -5

09:00 Eurozone Business climate indicator March 0.82 0.9

09:00 Eurozone Economic sentiment index March 108 108.3

12:00 Germany CPI, m/m (Preliminary) March 0.6% 0.4%

12:00 Germany CPI, y/y (Preliminary) March 2.2% 1.9%

12:30 Canada Industrial Product Price Index, y/y February 2.3%

12:30 Canada Industrial Product Price Index, m/m February 0.4% 0.3%

12:30 U.S. Continuing Jobless Claims 1990 2020

12:30 U.S. Initial Jobless Claims 261 248

12:30 U.S. PCE price index ex food, energy, q/q (Finally) Quarter IV 1.3% 1.2%

12:30 U.S. GDP, q/q (Finally) Quarter IV 3.5% 2%

13:45 U.S. FOMC Member Mester Speaks

15:00 U.S. FOMC Member Kaplan Speak

20:30 U.S. FOMC Member Dudley Speak

21:45 New Zealand Building Permits, m/m February 0.8%

23:00 United Kingdom Gfk Consumer Confidence March -6 -7

23:30 Japan Tokyo Consumer Price Index, y/y March -0.3% -0.2%

23:30 Japan Tokyo CPI ex Fresh Food, y/y March -0.3% -0.2%

23:30 Japan Household spending Y/Y February -1.2% -1.7%

23:30 Japan Unemployment Rate February 3% 3%

23:30 Japan National CPI Ex-Fresh Food, y/y February 0.1% 0.2%

23:30 Japan National Consumer Price Index, y/y February 0.4% 0.3%

23:50 Japan Industrial Production (YoY) (Preliminary) February 3.7%

23:50 Japan Industrial Production (MoM) (Preliminary) February -0.4% 1.2%