- BOJ monthly report: Real exports likely falling sharply after quake. Japan economy suddenly in severe condition due to quake
- Swiss unadj unemployment in March 3.4%, s.a +3.3%, both as expected
- German February s.a trade surplus 11.4 bln, below median forecast of 12.5 bln. Exports +2.7% m/m, imports +3.7%
- UK March producer output prices +0.9% m/m, +5.4% y/y, above median forecasts +0.6%, +5.1% respectively. Input prices +3.7% m/m, +14.6% y/y, demonstrably above median forecasts of +2.1%, +12.5% respectively
- EU’s Rehn: Is sure Spain will not need external assistance
- Spanish EconMin: Portugal will be last country to need cash from bailout fund
- Finland FinMin: We have to do whatever is needed to secure financial stability in Europe. Portugal package must be tougher than reforms voted down byPortuguese parliament in March
- Irish FinMin: Will meet with German and French counterparts Friday to discuss bailout package
- Bank of France cuts Q1 growth forecast to 0.7% from 0.8%. Industry activity, services growth slowed in March, but business outlook favourable
Given the movement seen overnight in Asia, thought we were in for a lively European session. It didn’t pan out that way and net changes on major spots and crosses not so great.
EUR/USD up at 1.4405 from early 1.4390 having been as high as 1.4421. Talk of barrier option interest at 1.4430. Buy stops now seen through 1.4435 and 1.4450. Light trailing sell stops through 1.4385.
USD/JPY up at 85.25 from early 85.05. Real money and medium-term model funds seen buying this morning. Sell orders remain layered 85.50 up to 86.00.
Cable unchanged at 1.6380, but has seen choppy trade within a relatively narrow range. Did see spike to 1.6427 in wake of stronger than expected producer price data but gave up gains quickly.
Buy stops now seen through 1.6445 and 1.6460 (1.6459 2010 high)
AUD/USD effecively unchanged at 1.0525.
