- Fed’s Bullard: FOMC may not be willing or able to wait for all global uncertainties to be resolved to start normalising policy
- Fed’s Bullard: Now, some 18 months after end of recession, time to expect the economy to pick up and start growing fairly rapidly. If we wait too long with normalising policy we will get a lot of inflation
- Japan PM Kan: Has decided to aim for fiscal spending of 2 to 3 trln yen in first emergency budget
- German Gfk April consumer sentiment indicator 5.9, down from 6.0 in March, but slightly better than median forecast of 5.8
- UBS consumption indicator for Switzerland 1.46 in Febraury after 1.66 in January
- French February consumer spending +0.9% m/m, some way stronger than median forecast of +0.4%. January’s data also revised up marginally, to -0.3% from previous -0.5%
- Italy March business confidence rises to 103.8, up from revised 103.1 in February. Better than median forecast of 102.6
- UK Q4 GDP (final revision) Revised up to -0.5% from previous -0.6%. +1.5% y/y, unchanged
- Bank of France’s Noyer: French banks, insurers have good level of profitability, solvency
- Chinese banking regulator: Risks that could lead to property bubble still accumulating
- An Irish lesson for Portugal’s rescuers – WSJ
Well there’s been alot of huffing and puffing, but when all said and done not a great deal of net change on the majors.
EUR/USD very marginally firmer. Up at 1.4107 from early 1.4090, but someway off session high 1.4149. The euro bulls were pretty much in command early, triggering stops through 1.4125. We’d already topped out though (with India notable seller around highs) when Fed’s Bullard stuck a dagger in the euro bulls’ backs with another dose of hawkish monetary rhetoric (see above)
Talk sell orders 1.4145/55, said to include Chinese interest. Buy stops through 1.4160. Talk of large hedge fund sell order up at 1.4170/75. Buy orders clustered 1.4050/60 and more 1.4000/20. Stops below there and more through 1.3980.
USD/JPY up at 81.95 from early 81.70. Pairing garnering some underpinning from firm US treasury yields.
Sell stops through 81.50. On topside, sell orders 82.00/20, buy stops through 82.30. Then reports of China on the offer around 82.50.
AUD/USD down at 1.0235 from early 1.0250. Rallied initially, but ran into decent seling from Asian central bank around the 1.0271 session high. Fairly decent sell orders said to be lined up at 1.0300/20. Also talk of 1.0350 barrier interest.
Cable unchanged on day at 1.6015, to the pip where it was when I started. Pairing tried to rally, aided by buying from Reserve Bank of India in 1.6020’s, but Bullards’ comments put paid to that extending very far for now. We got to 1.6042 before heading south again.
