- BOJ outlook report: Japan economy to remain under strong downward pressure, mainly on output, for time being
- German March import prices +1.1% m/m, +11.3% y/y, as expected
- French March consumer spending -0.7% m/m, demonstrably weaker than median forecast of +0.2%
- German s.a April jobless total -37k to 2.970 mln vs median forecast -30k. Adjusted unemployment rate steady at 7.1%
- Italy April business confidence falls to 103.0, down from revised 103.5 in March (prev 103.8), weaker than median forecast of 103.8
- ECB’s Mersch: ECB will continue gradual exit from non-standard measures at appropriate pace
- Spain’s Santander: Sees bad debts near peak in Spain
- ECB funding to Greek banks at 90.4 bln end-Feb from 94.4 bln end-Jan
- ECB’s Costa: Clear that if unemployment goes up, Portuguese bank sector could be susceptible to mortgage sector problems
- Beijing: U.S. official says told China “deeply concerned” about deterioration in Chinese human rights conditions
- Britain says withdrawn Royal wedding invitation for Syrian ambassador – Foreign Office
OK OK, maybe I exaggerate a little. But at least the beleaguered US dollar has had a little reprieve this morning from it’s incessant pounding.
US treasury yields are firmer this morning, which will be providing some much-needed support.
EUR/USD down at 1.4805 from early 1.4865. BIS sold early above 1.4850 getting the ball rolling. But persistent buying by Asian sovereigns in the 1.4825/30 area lent support for most of the session. Only in late morning trading did stops through 1.4825 get tripped accelerating the sell-off.
More stops seen below 1.4800. Barrier option interest up at 1.4900.
USD/JPY effectively unchanged at 81.70. BIS reportedly bought around 81.50 lending much-needed support.
Cable down at 1.6645 from early 1.6725. The release of poor consumer confidence data overnight will have knocked a little of the shine off sterling. Real money buying slowed but didn’t manage to stop the decline.
