- US retail sales fall 1.1% in March, ex-autos down 0.9%
- US producer prices fall1.2%, core unchanged
- US business inventories slip 1.3%
- Fed’s Bernanke: Pace of economic slide may be slowing, dollar to remain reserve currency; strong economy will lead to currency staying strong
- Bank of Portugal lowers 2009 GDP forecast to -3.5% from 0.8% previously
- ECB’s Constancio: Recession in Europe may be worse than in US; policy response insufficient
- Obama: 2009 to be a rough year; sticks with cap and trade
- North Korea kicks out UN inspectors
- GM bondholders doubt bankruptcy can be avoided
- US equities close down 2%, 10 year note yields slip to 2.79%
EUR/USD fell to session lows at 1.3228 shortly after the very soft US retail sales data hit the wires. Central banks were steady buyers on the way down, from the 1.3240s down to 1.3228 before prices rebounded. 1.3305 capped rallies. EUR crosses were weak all day as the greenback and the dollar both were on the outside looking in. GBP, JPY and CAD were in demand for much of the day though they gave up some gains very late in the session.
USD/JPY was under pressure all day and fell to 98.75 before steadying and rebounding to 99.00 at the close.
Cable rallied to 1.4945/50 before stalling. An upbeat housing outlook, and strong Easter retail sales were supportive. EUR/GBP dipped below 0.8900 again late in the session.
CAD was in strong demand early in the session with real-money accounts noted buyers of CAD and sellers of EUR today. It fell to 1.2065 before bouncing sharply to 1.2145 late in thin trade.
