- Irish April manufacturing PMI rises to 36.1 from 35.1 in March
- UK CIPS/Markit April manufacturing PMI 42.9 vs revised 39.5 in March, highest since August 08
- UK April manufacturing new orders index 46.3 vs revised 39.4 in March, highest since April 08 and biggest rise since 1996
- UK March consumer credit +£0.129 bln, in line with median forecast of +£0.1 bln
- UK March mortgage lending +£0.757 bln, weaker than median forecast of +£1.6 bln, weakest since August 08
- UK March mortgage approvals 39,000 vs 38,000 in February, and in line with median forecast of +40,000
- UK March final M4 money supply +0.2% m/m, +17.8 y/y, weakest monthly rate since Oct 2007
Two main features of this morning’s session have been sterling strength and yen weakness, with the GBP/JPY cross up at 148.15 from an early 146.10. That move accelerated when buy-stops at 147.10/20 were triggered.
Sterling got a huge boost from the release of better than expected PMI data (see above) which has seen a cable rally from just below 1.4800 to a session high 1.4922. We’re presently at 1.4910. Thin trading conditions have probably exaggerated the move.
USD/JPY has moved higher, with the JPY seeing across the board weakness. The JPY isn’t being helped by improved risk sentiment, which is eroding it’s safe haven premium. At the same time poor economic data (Japanese unemployment rose to 4.8% in March from 4.4% in February/core annual CPI fell -0.1% in March, bringing back deflation) is serving to also undermine the currency.
USD/JPY reached a session high 99.58 when buy stops around 99.25 were triggered. We’ve settled back to 99.35 at writing.
EUR/USD had a fleeting early peek over 1.33 but it was very short-lived. Then it under some pressure when EUR/GBP got hit particularly hard post UK PMI, but at 1.3285 is little changed on the day.
A German bank in Frankfurt (working over the holidays) is said to have sold a yard of euros against sterling.
