• BOE minutes: MPC voted 6-3 to keep rates steady in May, as expected
  • UK jobless claims +12,400, worse than median forecast of flat
  • Deutschebank’s chief risk officer Banziger has told the bank to prepare and provision for a 20-30% haircut on its Greek debt exposure – Handelsblatt
  • Germany’s Schaeuble: Must provide for private investor contribution in sovereign debt crisis resolution
  • IMF’s Thomsen: Greece’s programme will run off track without determined effort by Greece
  • ECB’s Stark: Euro zone economy no longer needs degree of economic or monetary stimulus as at height of crisis
  • ECB’s Stark: Illusion to think Greek debt restructuring would help solve problems of country
  • ECB’s Bini Smaghi: Idea advanced economy may not pay back its debts “devastating” for overall financial stability
  • EU’s Barroso: Europe’s public debt levels too high, but compare favourably with U.S.
  • Danish May consumer confidence +2.5 pts, stronger than median forecast of +1

Sterling has had a poor morning. Cable down at 1.6162 from early 1.6270, EUR/GBP up at .8805 from early .8775. Cable came under pressure early amid reports of two “small sovereigns” selling. There were also a couple of rumours circulating in the market which didn’t help; one that jobs data was going to be worse than expected and two; MPC member Weale had changed his mind on a rate hike at the last meeting (ummm, gotta love those rumours)

Anyways we sat at 1.6220 at time of data/minutes release. Dip to 1.6200 was followed by quick rally followed by more sustained sell-off. The minutes seemed to suggest (well they did to me) that the Old Lady is going to sit on her hands re rate hike for the foreseeable future. Jobs data little mixed, but some will have homed in on the weaker than expected jobless claims.

Stops were eventually tripped through 1.6180 accelerating the move.

EUR/USD down at 1.4240 from early 1.4280. Greece worries remain to the fore. Middle Eastern sovereign buying has helped slow, but not turnaround, the sell-off. BIS was seen selling up around 1.4265 and buying around 1.4245. Ain’t they the clever ones?

USD/JPY effectively unchanged on day at 81.10.

AUD/USD down at 1.0600 from early 1.0650, having been as low as 1.0585. Central bank buying below 1.0600 has lent some tenuous support, but bounce off lows has been pretty anemic.