- UK Nationwide house prices rose +0.9% m/m in March versus -1.9% fall in February, first rise since October 07
- UK’s Business Secretary Mandelson: More competitive British currency is helping exports
- UK construction PMI rose to 30.9 in March, up from 27.8 in February (vs median forecast of 27.8)
- SNB’s Hildebrand: Will use all means to prevent further appreciation of CHF
- German new car registrations rose 40% in March
Sentiment is improving, risk appetite is growing and global stockmarkets are on a tear. The likes of sterling and aussie are benefitting against this backdrop , while the yen and swissy give ground as their safe haven premiums erode. The greenback sees mixed fortunes.
The improvement in sentiment isn’t coming from one or two factors, rather the confluence of many. Certainly we’re seeing some better economic data releases (just look at the three above), while certain officials have been making upbeat comments and ofcourse there are hopes the G20 will do the business.
Cable has seen a decent rally against this backdrop, underpinned today by the release of surprisingly good nationwide home sales and construction PMI.
USD/JPY has rallied strongly reaching a 99.78 sesson high, the yen undermined by the improving risk appetite, its’ perceived safe haven premium being eroded.
EUR/CHF has rallied strongly. Swissy was already struggling due to the better risk appetite when comments from SNB’s Hildebrand hit the wires. Standing around 1.5205 post comments, the cross has advanced to 1.5260 at writing as Hidebrand underlined the swiss commitment to prevent their currency strengthening.
EUR/USD has been pretty much sidelined, very litle changed on a morning of narrow range-bound trade. The market here is effectively on hold ahead of the ECB.
