- SNB’s Danthine: Swiss economy currently in slowdown mode rather than in growth mode
- Swiss March consumer price index +0.6% m/m, +1.0% y/y, someway stronger than median forecasts of +0.2%, +0.6% respectively. Swissy firms
- UK February manufacturing output flat m/m, weaker than median forecast +0.6%. Industrial output -1.2% m/m, much weaker than median forecast +0.4%. Sterling hit
- Moody’s takes rating actions on Portuguese banks
- Portugal sells 550 mln 6-month bills, 455 mln 12-month bills
- Portugal FinMin: Current yields show “irrepairable damage” from austerity package
- Leader of Greek parliament: Restructuring of Greek debt is entirely out of the question
- German February manufacturing orders +2.4% m/m, someway above median forecast +0.6%
- Irish bank regulator: No action against senior debt holders in four Irish banks
- UK Halifax March house price index +0.1% m/m compared to median forecast +0.2%
- German economic institutes to revise 2011 growth forecast to over 2.5% from previous 2.0%
- Ireland: Cut to interest rate on 85 bln bailout due in June – Sources
- U.S. Budget talks head to brink – WSJ
Enough going on to hold the interest. Swissy strength the main feature. USD/CHF down at .9140 from early .9255, EUR/CHF down at 1.3085 from early 1.3205. It’s been a brutal turnaround. Market had its perception that SNB probably someway from hiking interest rates severely mauled by the release of much stronger than expected CPI data (see above) Swissy started strengthening straight after and hasn’t really drawn breath.
Sterling on the otherhand has had a poorish morning. Cable down at 1.6300 from early 1.6330, having been as low as 1.6265. EUR/GBP up at .8760 from early .8730, having been as high as .8790.
The release of much weaker than expected production data (see above) did the damage and doesn’t bode well for Q1 growth prospects.
EUR/USD up at 1.4300 from early 1.4255 having been as high as 1.4317. Talk of ACB buying as Europe was arriving at their desks. Not surprising given reports of various Asian regionals buying dollars against their home currencies overnight. Classic bit of diversification.
Stops tripped through 1.4285 before we got to 1.4300, where bit of a skirmish ensued. China was said to be trying to protect 1.4300 barrier option interest, but they eventually had to give way. UK clearer with strong Asian ties and the Big German a couple of names mentioned as buyers forcing the euro bulls over 1.4300.
We got as high as 1.4317, but decent selling by “big” Asian central bank above 1.4310 has so far helped cap the rally. Didn’t get confirmation of the name, but it was probably China continuing to sell or maybe Korea.
USD/JPY marginally easier at 85.10 from early 85.35. Reports of decent sell orders layered 85.50 through 86.00 enough to prompt a little profit taking.
