- BOJ Gov Shirakawa: Japan economy moving in line with BOJ projections. Expect Japan GDP to improve sharply in Q-2. Economy no longer in freefall, but still high degree of uncertainty surrounding outlook.
- OECD’s Gurria: Sees chance of global recovery late 2009
- OECD’s Gurria: Does not see justification for UK credit rating cut
- Italian March s.a retail sales +0.1% m/m vs -0.9% in February
- UK Q-1 GDP unrevised at -1.9% q/q, -4.1% y/y
- UK April car production -55.3% y/y
- China April oil demand posts biggest rise in 7 months
USD remains weak, underminned by ongoing worries surrounding the burgeoning US government debt burden. The greenback has also be weighed down by improved risk sentiment, with stocks, oil, copper etc all up.
EUR/USD started out around 1.3915 and has rallied to a session high 1.3979. That’s just short of reported sell orders lined up from 1.3980 up through 1.4000 where there is said to be barrier option interest.
Cable has once again had a very choppy day. Started around 1.5850 and was rallying strongly toward 1.5900 when it hit a brick wall in the form of a bloomberg article. The piece highlights the fact that the UK Treasury refuses to release results of stress tests conducted on UK banks, because publishing the information may increase instability and force the government to take further action to shore up the UK financial system.
Cable subsequently sold off aggressively before steading at a 1.5756 session low. Comments from OECD’s Gurria, that he doesn’t see justification for UK credit rating cut, have helped lend support. At 1.5875 presently we’re a little firmer on the day. Buy stops said to be gathering just north of 1.5900.
