• French Q4 Non-Farm payrolls as expected fell 0.20%
  • China CB Chief Zhou advises that policy is neutral, not loose; targeted measures needed to tackle property prices
  • French February CPI 0.30% vs expected 0.50%, y/y was 1.20% vs expected 1.40%
  • Spanish February CPI 0.20% vs expected 0.10% with y/y at 2.80% vs expected 2.70%
  • ECB’s Weidmann commented that while there is no end to the EU crisis, the common currency will survive and speculation of any exits from the Union are senseless
  • EZ January Industrial Production 0.40% vs exp – 0.10%, y/y -1.30% vs exp – 2.20%

The Euro commenced the morning session quietly bid from a EURUSD open at 1.3037; the range was bound by offers at 1.3060s and buyers in the 1.3000s with the market poised yet again to hone in on optionality at the NY cut.

EURJPY selling from 124.80 gave the euro a southerly nudge as USDJPY held up in the 95.70s after rebuffing a push below 95.50 which found a firm bid.

European news was sparse and of little significance to a market which is position-driven.

Sterling found a bid as EURGBP met with sympathetic selling reflected from the move in EURJPY, and took out stops below 0.8720 and again at 0.8700; 0.8690 (current price) has supportive bids and we can expect stops 10-20 pips lower.

GBPUSD is trading firmly taking a breather from it’s recent steady down draught; the market is short and doubtless needs some respite. Currently trading 1.4960, expect selling towards 1.5000.

Market positioning being the key the USDJPY may yet see further attempts to test 95.50 and the break-up level of 95.00; rumored large option interest at 95.20 is in the air.

Antipodeans today were sidelined and remain steady to firm.