- Germany says Schaeuble comments on Greek restructuring do not reflect change in government policy
- US weekly jobless claims rise 27,000 to 412,000, much higher than expected
- US PPI rises 0.7% in March, core rises 0.3%; Headline lower than forecast, core higher
- PBOC’s Zhou: Should boost monitoring of economies of reserve currencies
- ECB’s Wellink: Default would have grave consequences
- EU’s Rehn: European economy too weak to withstand Greek restructuring
- Germany: Yuan may be added to IMF’s SPR basket in return for currency welcome
- Noda: Japan Will watch currency markets closely; Will ask G7 to for continued foreign exchange when needed
- Fed’s Plosser: Rates may have to rise in 2011
- US yields rise 4 bp to 3.50% in 10s
- S&P virtually unchanged at 1315
- Oil rises $1.25 to 108.35; gold ends close to record highs at $1474.
EUR/USD fell just low enough in London to trigger stops below the 1.4370/75 support level and spent the US session taking back virtually all those losses. We rallied as high as 1.4501 following buying in the low 1.44s from Middle Eastern accounts, a denial of a policy shift on a Greek debt restructuring for Greece from the German government and signs that the IMF is preparing to allow the Chinese yuan into the elite SPR currency basket which now consist of the dollar, euro, pound and yen.1.4520 resistance remains intact ahead of 1.4530 and 1.4550 barriers.
USD/JPY recovered from a brief dip below 83.00 on rumored buying from Kampo (Japanese institutional investor). Higher US yields and a reminder from the Japanese finmin that Japan is still watching forex rates helped send the buck back to the 83.50 area which is now acting as resistance.
AUD/USD was boosted by the revival of commodities markets as well as receding fears of further European sovereign debt drama. It brushed 1.0550 in late afternoon trade.
CHF gave up some of its recent gains, as one would expect, as risk aversion receded. EUR/CHF closes at 1.2933.
