- Swiss adjusted jobless rate 3.3% in March. Exactly as expected.
- German March final CPI confirmed at -0.1% m/m, +0.5% y/y
- ECB’s Trichet: Welcomes official US statements that strong dollar is in the interests of US. Could cut rates in a very measured way. To make decsion on unconventional measures in May meeting
- ECB bulletin: ECB sees inflation pressures weakening
- German government offers 1.39 euros per share for Hypo Real Estate
- UK February visible trade deficit -£7.315 bln, better than expected (vs median forecast of £7.6 bln.) Non-EU trade trade deficit -£3.964 bln, much better than expected (vs median forecast of -£5.5 bln.) Weak sterling starting to have demonstrable effect
- UK PPI March input prices +1.0% m/m, -0.4% y/y (vs median forecasts of +0.9% and -0.7% respectively.) Output prices +0.1% m/m, +2.0% y/y (vs median forecasts of +0.1% and +2.1% respectively.)
- ECB’s Nowotny: Personal opinion benchmark rate should not go below 1%, but point open for discussion. Measures such as buying commercial paper, corporate bonds of interest when trying to boost credit supply
- German industrial production February -2.9% m/m, 23.2% y/y (vs median expectations of -3.0%, -21.7% respectively) 6th month on month fall in row. Biggest annual fall since reunification in 1990.
Very little change this morning, as the market struggled to garner any real clear direction. Out of the majors, cable has probably seen the biggest change, having lost about half a cent on the day with sterling seeing some very marginal across the board weakness. UK clearer said to have been notable seller of cable.
The market awaits the Bank of England rate decision. Expectations are for rates to be kept on hold. More importantly the market wants to hear evidence that the authorities are commited to the quantitative ease programme.
