• SNB’s Jordan: Global economy facing severe recession followed by slow growth, but no depression
  • Spain Q-1 flash GDP -1.8% q/q, -2.9% y/y, in line with median forecasts
  • Novotny: Signs of stabilisation beginning to emerge, especially in financial sector. Key interest rate may approach “lower boundary of zero” In zero interest rate situation central banks can still use other measures
  • EU’s Almunia: Sees positive signals in Europe’s economy. Recovery after crisis may be gradual
  • ECB monthly bulletin: ECB sees signs inflation pressures easing
  • ECB’s Papademos: Recovery may start sooner than previously envisaged
  • ECB’s Novotny (again): Current interest rates are appropriate. Current amount is enough for time being on covered bond spend. No further spending steps being discussed
  • ECB’s Sramko: Sure governing council will discuss other options on non-standard measures
  • ECB’sWellink: On 60 bln figure for bonds, we have taken this decision, it follows we think it is enough. Warns not to become too optimistic when seeing a few swallows

We’ve drowned in a sea of comments from various officials this morning , most eminating from ECB officials attending a 2 day conference going on in Vienna. At the end of the day they’ve all made precious little impact on trading which has been mainly driven by short-term technical considerations as much as anything.

Risk sentiment still isn’t in very good shape, underminned by yesterdays poor US retail sales data.

The latest ECB monthly bulletin as usual was a close repeat of Trichet comments made at last weeks ECB policy meet. Signs of a more broad-based reduction in inflation. Contraction in January-March period clearly worse than expected, but tentative signs of stabilisation.

An early rally in EUR/USD floundered up against technical resistance at 1.3620/25 and we’ve drifted off to 1.3575, pretty much where we opened.

Cable has come under some pressure in late morning trade, off about half a cent on the day, presently at 1.5080. The pairing is still being weighed down somewhat by yesterdays BOE quarterly inflation report and subsequent King comments, both of which were pretty dour.

USD/JPY is little changed. Technical picture doesn’t look very constructive. Source reports Japanese exporter sell interest up at 95.70/80.