- US Feb CPI +2.9%, as expected
- US Fed industrial production 0.0% vs +0.4% exp
- U of Mich March consumer sentiment 74.3 vs 76.0 exp
- Canada Jan manufacturing sales -0.9% vs +0.2% exp
- Irish fin min says economy could take off next year
- Rumors of EFSF 5yr and 20-30yr bond next week
- Fed’s Evans: FOMC should take more steps
- Greek banks given leeway to tap ECB
- German borrowing to rise this year
- US threatens North Korean aid
- S&P 500 up 0.1% to 1404, gains 2.4% on week
- GBP leads USD and CAD lags
- On week, GBP leads and JPY trails
EUR/USD blasted above stops at 1.3090, jumping to 1.3135 in a flash after the CPI data. Explanations about renewed QE3 expectations are a stretch but the EUR/USD buying continued after IP and cons sentiment, hitting 1.3187 and busting shorts.
The cable move was similar but more dramatic, jumping to 1.5880 from 1.5740 in the final hours of trading for the week. The move stalled out right at the 200-day moving average and drifted back down to 1.5820/30 at the close.
USD/JPY was caught in the dollar-selling bonanza, falling to 83.52 from a session high of 83.94 moments before the CPI news. Sturdy US bonds helped a rebound to 83.75 but a late bond rally knocked the pair to a two-day low of 83.17. Firm bid down to 83.00 held the pair and it was trapped in a tight 83.30/40 range in the US afternoon.
