- SNB’s Hildebrand: Upside risks to price stability beginning to emerge, trend moderate so far. High commodity prices could hit country if franc weakens fast. Despite strength of franc, Swiss economy growing stronger than anticipated
- Russia C.Bank raises rates 25 bps, due to high level of inflation expectations
- German March retail sales -2.1% m/m, -3.5% y/y, demonstrably weaker than median forecasts +0.3%, +1.4% respectively. Consumers bought fewer groceries and textiles
- Euro zone economic sentiment falls to 106.2 in April, down from 107.3 in March and below median forecast of 107.0. Consumer inflation expectations 30.7 vs 30.8 in March, stubbornly high
- Euro zone April inflation estimated at 2.8% y/y, slighlty above median forecast of 2.7%
- French March producer prices +0.9% m/m, stronger than median forecast of +0.7%
- Spain’s Q1 unemployment rate 21.3%, up from Q4 2010 20.3% and above median forecast of 20.5%. Highest rate in 14 years
- Euro zone March M3 annual growth 2.3%, stronger than median forecast of +2.1%
- Italy March adj jobless 8.3%, better than median forecast of 8.5%
- Italy April EU-harmonised inflation +1.1% m/m, +3.0% y/y, stronger than median forecasts of +0.8%, +2.7% y/y respectively
- Swiss KOF leading growth indicator 2.29 in April, up from revised 2.25 (prev 2.24) in March, above median forecast of 2.20
- France’s Lagarde: Confident Greek govt on track to get debt situation in order
Swissy saw across the board strength this morning, bolstered by various comments from SNB’s Hildebrand (see above) The official didn’t sound overly perturbed by the francs’ recent strength and at the same time raised the spectre of growing inflationary pressures.
Stronger than expected Swiss KOF data (see above) also played a small part. And ofcourse there’s always the turmoil in the Middle East providing swissy with safe haven underpinning.
USD/CHF down at .8665 from early .8730, EUR/CHF down at 1.2880 from around 1.2950.
EUR/USD has made some ground, up at 1.4865 from early 1.4830 having been as high as 1.4877. It took an age though to take out well-documented sell orders up in the 1.4850/60 area. Alot of euro zone data out this morning, and the inflationary/price data remains stubbornly strong. Will have helped underpin the pairing.
Barrier option interest now up at 1.4900.
USD/JPY has slipped to 81.35 from early 81.55, having been as low as 81.25. The decline comes amid talk of negative asset manager month-end flows.
Cable at 1.6655 effectively unchanged on the day.