EU focus: Euro rises against Dollar after inflation accelerates

Data released
06:00     UK     Nationwide house price index (March)    0.5%    0.0%    0.3%
06:00     UK     Nationwide house price index (March) Y/Y    0.1%    -0.6%    -0.1%
06:00     Germany     Retail sales (February) real adjusted    -0.3%    0.3%    1.4%
06:00     Germany     Retail sales (February) real unadjusted Y/Y    1.1%    1.1%    2.6%
06:45     France     PPI (February)    0.8%    0.7%    0.9%
06:45     France     PPI (February) Y/Y    6.3%    6.2%    5.6%
07:55     Germany     Unemployment (March) seasonally adjusted    -55K    -22K    -52K
07:55     Germany     Unemployment (March) seasonally adjusted, mln         -    3.069
07:55     Germany     Unemployment rate (March) seasonally adjusted    7.1%    7.2%    7.3%
07:55     Germany     Unemployment (March) seasonally unadjusted, mln    3.210    -    3.317
07:55     Germany     Unemployment rate (March) seasonally unadjusted    7.6%    -    7.9%
08:00     Italy     PPI (February)    0.5%    0.6%    1.1%
08:00     Italy     PPI (February) Y/Y    5.3%    -    5.1%
09:00     Italy     CPI (March) preliminary    0.4%    0.3%    0.3%
09:00     Italy     CPI (March) preliminary Y/Y    2.5%    2.2%    2.4%
09:00     Italy     HICP (March) preliminary Y/Y    2.6%    2.1%    2.1%
09:00     EU(17)     Harmonized CPI (March) Y/Y preliminary    2.6%    2.3%    2.4%

The euro strengthened against the dollar and the yen as data showed euro-region inflation unexpectedly accelerated in March, bolstering the case for tighter monetary policy.
German unemployment fell sharply for a second straight month in March, pushing the jobless rate down to 7.1%, its lowest level since figures for a unified Germany were first published two decades ago.
In a sign that demand for labour remains robust in Europe's largest economy, the Federal Labour Office said unemployment fell by 55,000 in March after a drop of 54,000 in February.
Data from the Federal Statistics Office showed an unexpected 0.3% drop in real retail sales for the month of February in a sign rising prices, driven by high oil, may be tempering consumer demand.
Annual inflation in Germany has pushed up to 2.2%, when harmonised according to EU standards, and consumer prices in the broader 17-nation euro zone jumped 2.6% in March compared to the year before, data on Thursday showed.
The European Central Bank is expected to respond to rising price risks next week by raising its benchmark interest rate from a record low 1.0%.
“The market is expecting the ECB to hike interest rates,” said Jane Foley, a senior foreign-exchange strategist at Rabobank International. “There has been decent buying of the euro. Ultimately it underscores that investors are still not that fazed by the crisis in Portugal or the Irish stress tests.”
Australia’s dollar climbed to a record after the nation’s retail sales grew more than estimated.
Sales rose 0.5% last month, the Bureau of Statistics said today, surpassing the 0.4% increase projected by economists. The number of permits granted to build or renovate houses and apartments dropped 7.4%, while economists had estimated a 4% increase.

EUR/USD rose from $1.4125 to $1.4235 in EU before retreated to $1.4200. In general rate looks bullish.

GBP/USD challenged resistance at $1.6150 but failed to break above and retreated to $1.6060. Later rate rebounded to $1.6088.

USD/JPY remains within the Y82.60/90 range.

US data starts at 1230GMT with the weekly jobless claims. Initial jobless claims are expected to fall 2,000 to 380,000 in the March 26 week after falling in four of the last five weeks.
US data continues at 1345GMT with the the March Chicago Purchasers Index. The Chicago PMI is expected to fall to a reading of 70.0 in March.
At 1400GMT, factory new orders are expected to rise 0.5% in February after being lifted by aircraft orders and energy prices in January.