The ECB's balance sheet grew 0.4%

Good Morning,

- US Retail sales jump 1.1% yesterday for March, beating estimates.

- Sales at U.S. retailers increased 1.1% in March to a seasonally adjusted $433.9 billion, the Commerce Department estimated on Monday. This is the largest gain since September 2012. Sales rose an upwardly revised 0.7% in February, compared with previous estimate of a 0.3% gain. Ahead of the report, economists surveyed by Market Watch expected total sales to rise 0.8%. Excluding the 3.1% rise in motor vehicle sales, retail sales rose 0.7%. Economists had expected ex-auto sales to rise 0.4%. Gains were widespread across sectors. Sales at general merchandise stores had their biggest gain since March 2007.

- EURUSD and other euro crosses opened on Monday with a gap lower and continued moving lower throughout the session. On the data front industrial production in the Euro zone came in lower at 0.2% from 0.3% , while retail sales in the US were higher at 1.1% from 0.8% expected, giving the dollar a solid boost.

- Massive BOJ-Buying Silences JGB Market…On Monday, the newest 10-year Japanese government bond — the yield on which is used as a benchmark for bank loans and a barometer of trust in government finances — didn’t trade even once…. Traders say it is another sign of how the Bank of Japan’s massive bond buying program has silenced the market. If the 10-year JGB goes a full 24 hours without being traded, it will be the first time since Dec. 26, 2000, according to the Japan Bond Trading Co., which publishes rates…

-Bank of France chief, Noyer, also noted that the stronger the euro is, the more accommodative policy is needed. Elaborating on, ECB’s Noyer speaking on CNBC said yesterday that “the ECB stands ready to act… We can buy private or sovereign assets if we do QE …We still hold that euro might correct naturally…ECB action will depend on inflation, incoming data …Appreciation in euro over past 12 months is not appropriate.”

- $XAUUSD falls back after setting a new 3-week high at 1331.08 and approaches support by the 50-day moving average at 1316.94.

- The ECB's balance sheet grew 0.4% (€8.9 bln to €2.161 tln) for the first time in 10 wks. In the past year, has increased only 6 times- ECB has modeled up to 1 trillion euros of QE – German press.

- Financial crisis will not have long-term impact on UK growth, say economists. Fears that the financial crisis will have a significant negative impact on long-term UK economic growth are unfounded, according to the results of a new survey that brings together views from a broad range of economists.

- As violence escalates in eastern Ukraine, Europe is moving toward an action some thought it might never take: the imposition of stringent economic sanctions on Russia. Plus, Ukraine's geographic fragility was obvious before there was even a Ukraine.

- Watch movers for today: UK CPI, US CPI, EZ ZEW, CAD Existing Home Sales, US Yellen Speech at Financial Markets Conference.

Have a nice Day !