- South Korean fx authorities seen buying dollars to stem won’s strength. Said to have bought estimated $2 billion – Traders
- BOJ Dep Gov Nishimura: No change in BOJ view supply chains will recover from June-July
- Ifo April German business climate index 110.4, pretty much in line with median forecast 110.5
- Chinese Ministry of Finance: China in talks to invest in Spain, including in the reorganization of troubled Spanish savings banks
- UK March retail sales +0.2% m/m, +1.3% y/y, demonstrably stronger than median forecasts -0.5%, +0.8% respectively
- UK March PSNB 16.393 bln, better than median forecast of 18.55 bln
- Greek 5 year credit default swaps rise to record high 1,335 bps, up 53 bps on day
- FinMin Katainen: Finland must have stance on Portugal aid package by May 16 Econfin meeting. Still positive Finland will take part in Portugal aid
- German FinMin report: Sees Q1 growth doubling to about 0.75% from 0.4%
Dollar saw more weakness this morning, posting across the board losses.
EUR/USD up at 1.4630 from early 1.4570. The pairing was rallying strongly before European traders even had time to make themselves comfortable. Barrier option interest at 1.4600 was taken out in the blink of an eye.
We’ve been as high as 1.4649 so far, defence of 1.4650 barrier interest proving somewhat more robust. Probably being helped by fact interest waning as traders head for the sidelines ahead of the long weekend.
Cable up at 1.6560 from early 1.6440. The pairing rallied early and barrier option interest at 1.6500 gave out without much of a struggle. Aggressive buying from a US investment house was seen helping the push up through 1.6500.
We then slipped back just below 1.6500, ahead of a raft of UK economic data releases. Bit of cautionary profit taking on longs just incase the data proved disappointing.
The sterling bulls needn’t have worried. We sat around 1.6490 on the release of data, and better than expected retail sales, PSNB then propelled cable quickly higher.
AUD/USD up at 1.0760 from early 1.0745, having been as high as 1.0773. Strong selling by a large US custody bank helped slow the aussie’s march northwards. Talk of barrier option interest now at 1.0800. Also talk of sell orders to the tune of $2 billion lined up at 1.0780/00 ahead of the barrier interest.
USD/JPY touch easier at 82.00 from early 82.20 in slow trade. Talk of buy orders clustered down at 81.80 and 81.50.