- JP Morgan loses $2 billion in credit derivatives trades
- China’s CPI in April was +3.4% YoY, slightly higher thanh 3.3% expected but lower than last month’s 3.6%
- Japan M2 money growth slows to 2.6% YoY
- UK Nationwide consumer confidence falls to 44 in April, from 52 in March
- RICS survey shows UK construction expanded slightly
- Regional Bourses -0.25% on average
- Gold $1586/oz; Oil $96/bbl
It was an eventful start to the day with the announcement right on NY close that JP Morgan had suffered some major trading losses in credit derivatives. This caused US stock futures to tumble and sent FX risk trades lower alongside.
AUD/USD fell from 1.0080 to 1.0047 on the announcement but has gradually recovered slowly through the session and closed this opening gap. The Chinese CPI sent the AUD slightly lower, as expectations of a Chinese RRR cut now recede, but overall it’s been a session of tight ranges. 1.0039/81
EUR/USD had only one meaningful move when some heavy CME sellers entered the market, sending it tumbling from 1.2935 to 1.2905 in the space of 10 minutes. Barrier protection ahead of 1.2900 held firm and there’s been a slow recovery since. Ranges: 1.2903/43
USD/JPY has been capped by heavy Japanese corporate offers near 80.00 but dips have been relatively shallow ensuring a tight 79.79/97 trading range.
Cable 1.6119/42; EUR/CHF 1.2006/11
