- University of Michigan consumer sentiment index rises to 65.1; beats forecasts
- ISM survey rises to 40.1; highest since Sptember
- US factory orders fall 0.9% in March
- US auto sales remain very weak
- Stress test results delayed until late on Thursday, May 7
- JP Morgan ups GDP forecast to -0.5% in Q2, sees recession’s end by mid-year
- S&P rallies late, closes up 0.5% at 877.50
After a choppy European morning it was a stunningly quiet session in the US. EUR/USD traded a 1.3235/1.3280 range (on the wide) and failed to get any boost from upbeat US consumer sentiment and ISM, suggesting that the reflation trade is a bit played out.
USD/JPY probed above 99.50 twice but found good sellers each time. Offers extend to 99.70 with some stops mixed in in the 99.60s. Offers are said to be heavy from 99.90 to 100.00. Firm US bond yields, Citi’s deal to sell Nikko and weak Japanese data.
GBP was the big story today with a German prop desk said to be liquidating a EUR/GBP long. Cable reached 1.4935 and closed at 1.4905. GBP/JPY was in demand as well.
Commodity currencies traded with a firm tone as Chinese PMI data and hopes that an economic bottom has been seen lend support to AUD and CAD. AUD closes at 0.7310 and USD/CAD at 1.1850.
