- ECB’s Weber: Non-standard measures to be announced in May; to last through the rest of the year and into 2010
- US CPI falls 0.1% in March, core up 0.2%: First annual drop since 1955
- Empire State manufacturing index rebounds to -14.7 from -38.2
- Eurogroup’s Juncker: Fears debt spiral in Europe; Anglo-Saxon model dead
- TIC data shows outflows of $97 bln in February, long-term inflows ex-swaps of $22 bln
- US industrial production falls 1.5% in March
- Finnish banking sector outlook negative: Moody’s
- ECB’s Ordonez: Room to cut rates; no room for further stimulus
- Fed’s Beige Book more upbeat, suggests pace of economic decline slowing
- US equities rise 1.4%, 10-year notes dip 2 bp to 2.77%
The comments from ECB hawk Weber all but announcing that quantitative ease will begin in May and will last into 2010, at least helped knock EUR/USD to 1.3150 before stabilizing. A rebound in US equities late in the session helped lift EUR/USD back above 1.32 late in the session.
EUR/USD still lacks conviction as dealers look away from EUR/USD and USD/JPY toward AUD/USD, GBP/USD and USD/CAD for more profitable opportunities.
The commodity currencies and the pound have benefited from sovereign sponsorship this week, it is believed, as well as buying by macro accounts who favor a recovery in the global economy lead by emerging markets and not the developed markets, as is traditionally the case.
AUD/USD recouped lost ground during the US session with a powerful New York investment bank leading the charge.We end the day near session highs, at 0.7275.
GBP/USD traded above 1.5000 in US trade before modest profit-taking late in the day knocked it back to the 1.4985 area. This will be seen as a positive close technically.
The Loonie roared today as USD/CAD fell to 1.2015 lows. 1.20 barriers are rumored on dips. Heavy EUR/CAD selling was a feature today.
