- Canadian retail sales rise 0.3% in March
- RBA rumored selling small amounts of AUD above 0.78
- ECB’s Weber: Rates appropriate at current levels
- Brazilian finmin: Recent currency strength a concern
- White House: Do not expect US to lose AAA rating
- Canada’s Flaherty: Glimmers of hope on economy ,manufacturing to make up smaller percentage of economy going forward
- IMF says Canada better positioned than other countries to weather downturn
- Eurogroup’s Juncker: Euro rise could hamper recovery; not in line with fundamentals
- US Treasuries close at highest yields since November, 10-year note at 3.45% yield
- Commodities moderately firmer; CRB up 0.7%
More of the same as the dollar loses ground across the board except versus the JPY which caught a case of risk resumption.
EUR/USD extended its gain to 1.4051, triggering another barrier as bond traders trade currencies and currency traders effectively trade bonds. A week ago, we all traded stocks…next week it’ll be coffee, cocoa and sugar if the inflation story really moves front and center.Sovereign accounts bought the very modest pullbacks below 1.40 during the US morning. Some of the more active CB’s appear to have gotten short after fading recent strength when EUR/USD broke out to the topside.
Cable was a less stellar performer today as EUR/GBP stabilized but came close to 1.5950 before stalling.
AUD/USD peaked earlier in the day than EUR/USD, at 0.7867. Reports of modest RBA selling were heard this morning but AUD barely batted an eye.
USD/JPY turned tail during US trade, bouncing from the 93.80s to the 94.90s. Talk of Kampo buying swirled in NY Friday morning while good amounts of EUR/JPY buying was seen in thin afternoon trade.
Coverage will be lighter than normal on Monday with London and the US on holiday. All the best!
