- Japanese GDP comes in worse than expected at -0.9% QoQ
- UK consumer confidence falls to 43 in April from 45 in March: Nationwide Index
- Fed’s Bullard: Worried about commodities as an asset class
- Stockmarkets mixed: Sydney +1%, Seoul -0.5%, Singapore +0.5%, Nikkei flat
- Oil back above $100/bbl and Gold steady at $1497/oz
- Dominique Strauss-Kahn resigns from IMF
The poor Japanese GDP numbers should have given the FX market some scope for caution and one would expect risk trades to be sold and perhaps the USD/JPY to rise a little. Exactly the opposite has happened with JPY crosses rising and USD/JPY drifting lower. The oil price back above $100/bbl may have had some impact on the USD but movements have again been driven by stop-loss hunting in Asia.
EUR/USD closed in NY near 1.4245 but rose throughout the morning session, albeit very slowly at times. Stop-loss buy orders above 1.4290 and 1.4300 were the target and they were finally triggered with the market topping out initially at 1.4305. Ranges: EUR/USD 1.4243/1.4305
USD/JPY has drifted lower during the session after closing in NY at 81.75. The JPY crosses have generally drifted higher but interest all round has ben raher muted. Ranges: USD/JPY 81.46/81, EUR/JPY 116.29/70
AUD/USD has closely followed the moves in the EUR/USD, gradually moving higher after opening near 1.0625. AUD/JPY stalled ahead of some reported sell orders near 87.15. Ranges: AUD/USD 1.0619/82, AUD/JPY 86.72/87.11
Cable 1.6153/86, EUR/GBP .8807/40, USD/CHF .8783/.8819
