- Irish Europe Minister: Absence of IMF’s Strauss-Kahn will have no impact on euro zone Fin Min meeting
- German govt spokesman: Discussions over possible successor of IMF chief are not appropriate. Struass Kahn remains innocent until proven guilty. IMF will be able to play full role in euro zone crisis
- EU Commission: There will be no impact on bailout programmes for Ireland, Greece or Portugal from Strauss Kahn’s arrest. Debt restructuring not on the cards for Greece. Reprofiling of debt is a different concept from debt restructuring
- Japan s.a April consumer confidence index 33.1, down from 38.6 in March
- Japan draft policy guideline: Forex market stability important for smooth economic revitalisation
- ECB’s Nowotny: Would be economic nonsense for Greece to leave euro zone – Paper
- EU’s Rehn: Greece must speed up reform, privatization. No alternative to reform programme in Greece
- Euro zone April inflation +0.6% m/m, +2.8% y/y, in line with median forecasts
- Euro zone March trade balance +2.8 bln, better than median forecast +1.5 bln. But February’s -1.5 bln deficit revised to -3.0 bln
EUR/USD up marginally at 1.4125 from early 1.4090, having been as high as 1.4148. Central back buying lent the pairing support in early European trading and option-related/prop desk buying helped extend the rally.
Sell orders were well-touted up at 1.4150 and it came as no real surprise when we topped out just shy of said level.
Cable unchanged at 1.6180. Early rally extended as high as 1.6222, but hedge fund selling was notable above 1.6200 and we quickly retreated.
USD/JPY marginally easier, down at 80.75 from early 80.95. Buy orders seen 80.50/60, stops below.
