- PBOC’s Zhu: Greek debt crisis just the beginning
- PBOC’s Zhu: China should and could move toward a floating currency regime
- Vice Minister of Commerce Zhong: Won’t succumb to foreign pressure on yuan
- Govt of Dubai to support restructuring of Dubai World, Nakheel through $9.5 bln in new funding
- EU’s Rehn: EU Commission encourages EU leaders to decide on mechanism to help Greece. Working with euro zone countries, ECB to reach agreement on Greece this week
- Germany’s Merkel: If any euro country became insolvent, it would have serious impact on all. That’s why EU leaders agreed they will act if it became necessary. But Greece is not insolvent, Greece has agreed an ambitious programme of cuts
- ECB’s Trichet: To extend soft collateral rules into 2011
- Euro zone February M3 money supply annual growth -0.4%, weaker than median forecast of -0.1%
- German Gfk April consumer sentiment indicator holds steady at 3.2%, better than median forecast of 3.1
- French Febraury consumer spending -1.2% m/m, much weaker than median forecast of +0.3%
- ECB’s Nowotny: Euro depreciation is actually positive for whole economy
- Italy March business morale rises to 84.1 from downwardly revised 83.8 in February, weaker than median forecast of 84.5 but still highest read since June 2008
- UK February retail sales +2.1% m/m, +3.5% y/y, much stronger than median forecasts of +0.7%, +3.2% respectively as household goods sales soar. But January’s data revised sharply downward, to -3.0% m/m, -0.8% y/y from initial -1.8%, +0.9% respectively
Good morning for sterling, cable up at 1.4955 from early 1.4860, EUR/GBP down at .8922 from early .8945 and GBP/JPY up at 137.55 from around 136.80. The good news from Dubai regarding the government there supporting Dubai World restructuring gave sterling a lift given UK banks exposure.
An Asian sovereign was seen buying early. Cable stood around 1.4940 on the release of much better than expected February retail sales and we spiked to session high 1.4987 straight after the release. However the sharp downward revision to January’s data didn’t escape notice and we quickly slipped back.
EUR/USD saw the 1.3300-1.4300 dnt get blown up in late Asian/very early European trade as traders noted PBOC’s Zhu comment (see above) We reached a low of 1.3285 as stops tripped through 1.3300, before gradual recovery amid talk of sovereign buying. We’re presently at 1.3350.
Obviously there has been some short covering as the two day EU summit got underway in Brussels. JUst incase EU leaders somehow managed to pull a rabbit out of the hat. Trichet’s announcement that ECB will leave emergency collateral rules in place into 2011 (see above) will also have lent EUR/USD some support.
USD/JPY very slightly lower, down at 91.95 from early 92.05, with the pairing having run into Japanese exporter sell interest overnight in Asia. Tlk of buy orders down at 91.50/70.
