• UK Nationwide says house prices rose +0.7% m/m, +9.0% y/y in March, better than median forecasts +0.2%, +8.2% respectively
  • Latest Daily Express/Opinium survey shows Conservatives extending poll lead. Suggests narrow parliamentary majority
  • Fitch: Europe’s aid deal for Greece involving IMF is positive, boosts Greece’s financing options. But questions remain about Greece’s growth prospects, whether it can stick to austerity plans
  • U.S. Fed’s Evans: Current monetary policy in U.S. economy is appropriate. Inflationary concerns are minimal. Very concerned about the state of unemployment
  • German February import prices +1.0% m/m, +2.6% y/y, stronger than median forecasts +0.2%, +2.0% respectively
  • French Q4 GDP confirmed at +0.6% vs +0.2% in Q3
  • UK final Q4 GDP +0.4% q/q, -3.1% y/y, upwardly revised from previous +0.3%, -3.3% y/y

Good morning for sterling, cable up at 1. 5075 from early 1.4995 having been as high as 1.5095. EUR/GBP down at 8935 from early .8992 having been as low as .8927.

Daily Express/ Opinium poll suggesting Conservatives might just gain parliamentary majority; stronger than expected Nationwide house price data and slight upward revision in Q4 GDP have been factors underpinning the UK currency. Middle Eastern sovereign cable sales have been noted, but they’ve done no lasting damage.

EUR/USD sits at 1.3470, slightly lower on the day. Started out so well for the euro. EUR/USD started around 1.3485 and rallied early, tripping stops through 1.3520 on way to session high 1.3539 with Asian sovereign buying noted.

Then it all turned pear-shaped with Eastern European names notable sellers around the highs. Heavy selling of the EUR/GBP cross by a UK clearer and US bank didn’t help EUR/USD’s cause any. Things then went from bad to worse for the euro bulls as rumours circulated of a French credit downgrade. This sent EUR/USD down to 1.3454 session low before recovery.

USD/JPY at 92.50 has seen narrow rangebound trade during European morning, after recovering from dip to 92.13 low during Asian overnight trade. Talk of buy orders 92.00/10, stops below, sell orders 92.90/00 and then again at 93.40/50.

AUD/USD at .9207, firmer from early .9185, with US investment bank notable buyer this morning.