- IBD TIPP consumer confidence index 49.1 in April vs 45.3 in March
- EU competition czarina Kroes: Can’t rule out bankruptcy for some banks.
- Greek CB head reported to say rates can fall below 1%; claims to have been misquoted.
- ECB’s Constancio: Low risk of deflationary side-effects; gradual recovery in 2010
- Ireland cuts spending, raises taxes further to close deficit; sets up bad asset fund
- US consumer credit falls $7.5 bln in February, rose $8.1 bln in January
- Oil closes down $2.00 at $49.05
- S&P down 2.4%
The US opened with risk aversion at its heights and EUR/JPY at its lows. From 132.18 prices recovered to 134 before easing abck to 133.10 at the close. Flows were quite light, especially in the afternoon with many away this week for school vacations ahead of Easter and Passover
EUR/USD fell to 1.3228 just before the US open and rebounded on buying in the 1.3240s by the BIS early in the day. Rallies were limited to the 1.3290s.
The pound was quite strong today, supported by buying from the Indian central bank on dips in London and aided by a buy recommendation from Deutsche Bank. The US low was about 1.4610 with a bounce as high as 1.4777. Much of the afternoon was spent between 1.4720 and 50.EUR/GBP fell below 0.90 during the morning, triggering stops in the 0.8995 region. Demand for pounds was rumored for the settlement of the HSBC share offering earlier this week.
US earnings season kicks off tonight so look for risk aversion to remain a factor near-term.
