- NIESR: Estimates UK economy contracted 1.5% in Q-1 2009
- Fed’s Fisher in Tokyo: US economy is grim and faces a tough road. Sees US jobless rate surpassing 10% this year. Says euro faces bigger problems than greenback
- German February trade surplus 8.9 bln euros vs 6.8 bln in January. Better than median forecast of +7.5 bln. Imports fell sharply, down -4.2% m/m vs median forecast of -2.0%. Exports fell -0.7% m/m vs median forecast of a -3.7% decline.
- French February trade deficit -4.107 bln euros vs median forecast of -4.2 bln euros
- Bank of France survey sees Q-1 GDP at -0.8%. BOF industry business sentiment index upto 73 in March from 71 in February
- ECB’s Stark: “It will take some time until market participants and the general public will regain confidence in banking system.”
- Irish Fin Min: Ireland’s “real problem” is that it is in a “strong currency area”
- UK annual shop price inflation +2.0% in March vs 1.9% in Feb
Fairly sluggish trade this morning, when all said and done. The market shrugged off Fed Fisher’s assertion that euro faces bigger problems than greenback and EUR/USD spent most of the morning grinding slowly higher after an early dip.
Reports Bank of China was buying down at 1.3150/70 helped support the pairing. European stocks, although slightly down on the day, were for the most part fairly steady which will have helped sentiment.
USD/JPY came under early pressure, but technical support at 99.50 held. Still reports of sell-stops gathered just below.
Cable, for once, saw very quiet trade and at 1.4680 is hardly changed on the day.
