• Shanghai share index ends down 0.9%, lowest close in a week
  • Greek FinMin: Country continues to borrow normally. Budget programme is being implemented, is within targets
  • Greek Government spokesman; Greece does not need to activate EU/IMF aid plan for now. Greece making every effort not to be forced to borrow at “barbaric” rates. No risk of not being able to refinance debt. No chance of Greece going bankrupt
  • Greek/German 10 year government bond yield spread widens further, out to 453 bps
  • Bank of England leaves rates, QE unchanged, as expected
  • UK March Halifax house price index +1.1% m/m, +5.2% in 3 months to March from year ago. Median forecast had been for +0.6% m/m
  • UK New car registrations +26.6% y/y in March
  • UK February manufacturing output +1.3% m/m better than median forecast of +0.7%. Biggest monthly rise since September 2009. +1.4% y/y, biggest rise since February 2008.
  • UK February industrial output +1.0% m/m, better than median forecast of +0.5%. Biggest monthly rise since September 2009. -0.1% y/y
  • Euro zone February retail sales -0.6% m/m, -1.1% y/y, weaker than median forecasts of -0.1% m/m, -0.7% respectively
  • German February industry output flat m/m, weaker than median forecast +0.6%

Things hummed along through out the morning, but at the end of the day we didn’t get an awful lot of meaninful change. Yen has seen some further across the board strength, that’s probably the main feature. USD/JPY down at 92.95 from early 93.15, EUR/JPY down at 123.65 from early 124.20. Obviously yen benefitting from recent US/Japan yield developments (US treasury yields lower, JGBs higher) and also from speculation China is getting close to a yuan revaluation.

EUR/USD down at 1.3302 from early 1.3325. The euro bears took a little while to take out the well touted option interest at 1.3300 but eventually managed it with a German bank mentioned as major player in the push through. The move came as the yield gap between Greek and German government bonds spiralled. Stops were tripped through 1.3300 and we got as low as 1.3282 where BIS buying helped trigger a recovery.

GBP/USD sits at 1.5205, marginally lower from early 1.5225. We started off with cable coming under fairly heavy pressure, latest polls suggesting we’re headed for a hung parliament. Traders will also have noted article in the Telegraph highlighting BIS’s stark warning regarding UK public finances.

We got as low as 1.5143 before bouncing back strongly. Economic data, including house price data, car registrations and most importantly manufacturing/industrial output data has been encouraging helping lend support.

AUD/USD down at .9240 from early .9275 with US custody bank (custodial) notable seller today.