- ECB’s Stark: ECB not behind the curve; IMF printing money
- ECB’s Bini-Smaghi: No expectation of deflation; inflation expectations moving up
- University of Michigan consumer sentiment 61.9 in April from 57.3 in March
- Bernanke: Fallout from credit crisis likely to be long lasting
- US equities rise 0.5% ; 10-year note yield rises to highest since March Fed meeting at 2.95%
EUR/USD fell as low as 1.3017 today, weighed down heavy selling of EUR/JPY by Japanese institutional investors and liquidation of stale EUR/USD longs by medium-term accounts. Chinese bids were seen from 1.3050 on down to 1.3025 but bounces were minimal. The correlation with equities have broken down utterly in recent sessions.
EUR/JPY was sold all morning culminating with the London fixing at 15:00 GMT. The cross bounced from lows around 128.75 near the fix to the 129.70s at mid-afternoon before running into fresh offers.
GBP was pressured by long liquidation and comments from the UK trade minister this morning that he is not worried about a further slide in the pound. It eased as low as 1.4760 before bouncing to 1.4800.
I’ll be on holiday next week but will leave you in the capable hands of Gerry Davies and special guest start Mark Mitchell.
