• SKorean fx authorities bought estimated over $1.0 bln to check won’s rise on Wednesday – traders
  • Shanghai stock index closes down 0.3%
  • Greek FinMin: Greek banks have asked to use the remaining funds of bank support package
  • German FinMin spokesman: No change in plan for aid to Greece in last resort. We have done everything possible to restore confidence in Greece. Government has confidence in measures agreed for Greece
  • US Treasury’s Geithner: China’s yuan to take on broader role internationally. Greater international role for yuan is “healthy, necessary adjustment”
  • US Treasury spokesman: Geithner to meet privately with China Vice Premier Wany On Thursday in Beijing
  • BOJ Gov Shirakawa: See some signs of sustainable economic recovery. Will decide on April 30 if to upgrade BOJ’s main economic forecasts. JGB yields rise
  • Euro zone final March services PMI at 54.1, up from 51.8 in February and better than flash read of 53.7. Highest since November 2007
  • UK March services PMI at 56.5, down from 58.4 in February and worse than median forecast of 58.0
  • Euro zone Q4 GDP revised down to flat q/q, -2.2% y/y from previous +0.1%, -2.1% respectively
  • German February manufacturing orders flat m/m, better than median forecast -0.7%

Sterling was humming along quite nicely and then wham bang thankyou mam it got crushed. Cable down at 1.5150 from early 1.5255, EUR/GBP up at .8810 from early .8770. The trigger was the release of worse than expected services PMI data (see above) and things were exacerabated by a soft-ish gilt auction cover. A UK clearer (who has been seen selling sterling aggressively on a number of ocassions in recent weeks) is said to have been a notable seller of the UK currency once again this morning

EUR/USD is down on the day, presently at 1.3355 from early 1.3385. Attempted rally floundered around 1.3400. Greece worries never far from surface and German Finance Ministry spokesman came out with some uncompromising comments ie “We have done everything possible” (see above). Worries then underpinned by comments from Greek finance minister underlining the extremely fragile health of the Greek banks (see above)

USD/JPY down at 93.90 from early 94.15. Comments from BOJ Governor Shirakawa helped increase JGB yields (see above) which in turn lent yen some general underpinning.. Talk of stops through 93.50.