- French Q4 Unemployment 10.6% , expectation 10.1%, Q3 was 10.3
- Swiss February Adj Unemployment 3.1%, flat and as expected
- Indonesian CB sees 2013 GDP at low end of 6.3-6.8 target, leaves benchmark int rate at 5.75% as expected
- BOJ’s Shirakawa: wary that 2% inflation target met by higher inflation leads to higher bond yields, can hurt economy
- French Trade balance – EU 5.9bn , expectation – EU 4.8bn, last at revised – EU 5.4bn
- BOJ’s Nishimura: CB suffers Yen 2.3 trn of losses if long-term rates rise 1%
- Dutch CPI + 3.00% y/y unchanged , expected 2.80%
- Italian February PPI – 0.40% , vs expected +0.30%, prior -0.20%; y/y + 0.70% vs expected 1.80%
- Moscovici, French Fin Min, committed to deficit cutting, EU treaty change may be inevitable though not urgent
- Spain and France bond auctions well received, lower yields, positive take-up
- German February Factory Orders – 1.90% vs – 0.50% expectation, prior +0.80%
- BOE left rates and QE unchanged at 0.5% and £375bn respectively
- ECB leaves rates unchanged at 0.75%
A quiet morning interspersed with modest moves in the Euro pairs encouraged firstly by the BOJ’s Shirakawa presser comments and a little later the positive and well-received Spanish and French bond auctions.
The first move took the EURUSD with a 20 pip jump over 1.3000 taking a few stops out and taking the USDJPY a similar move above 94.00 in line with the EURJPY sweep to 122.50; EURGBP followed to test 0.8700 with a listless cable.
EURCHF maintained it’s firm tone to a high at 1.2339. USDJPY is firm at 94.35 the day’s high.
The euro ignored a poor German Factory orders number; the forthcoming interest rate announcement more in focus; when the ‘no change’ announcement came the euro didn’t blink.
Cable (GBPUSD) had traded for most of the session in a tight 15 point range just below 1.5000 with a very brief high at 1.5005.
BOE announced no change to rates or QE and cable flew 75 points higher to touch 1.5072, gilts dropped 39 ticks; clearly the market was disappointed and caught.
