- French March consumer spending +1.1% m/m, +0.6% y/y. Better than expected vs median forecasts of +0.2%, -0.5% respectively
- German IFO April business climate index 83.7, stronger than median forecast of 82.3
- UK Q-1 GDP -1.9% q/q, -4.1% y/y, weaker than median forecasts of -1.5%, -3.8% respectively
- UK March retail sales +0.3% m/m, +1.5% y/y, stronger than median forecasts of -0.3%, +1.1% respectively
EUR/USD has had a pretty good morning. The euro got an initial boost from better than expected French consumer spending data and then rallied further on the release of better than expected German IFO report. Stops above 1.3200 were triggered and a session high 1.3274 posted. The rally was capped when “real money” stepped in and sold in the 1.3260/70 area. We’re presently back at 1.3225.
While the euro has prospered, sterling has struggled. The currency was underminned early by an article in The Telegraph which said Moody’s and S&P are in the process of reviewing the UK’s Aaa sovereign debt rating. The currency was just managing to shrug off this development when the release of worse than expected Q-1 GDP data put it once again under the cosh. Cable fell from around 1.4665 to a session low 1,4601.
Moody’s have subsequently come out and denied the Telegraph story, saying the rating isn’t under review, A brief rally then ensued, but it didn’t last long at all and we’re presently testing session low again.
