• Japanese March industrial output rises to 0.9% from 0.2%
  • JGB yields continue to slide to 0.825% from 0.92% highs yesterday
  • World gold council sees gold demand down 13% in Q1 2013
  • US Fed’s Plosser says Fed should get out of MBS’s, does not see other CB’s acting aggressively if Fed exits
  • French March industrial investment -4 vs -1 prior
  • French NFP -0.1% vs -0.2% prior
  • French wages rise 0.7% in Q1
  • UK PM Cameron has the mighty Germans fighting his corner over EU membership and survives “regret” vote in parliament. Sees opposition Labour’s poll lead cut to 3%.
  • Italian March trade balance €0.607bn vs €0.380bn prior
  • EZ April inflation unchanged at -0.1% m/m 1.2% y/y
  • EZ March trade balance €22.9bn vs €10.1bn
  • EU Barroso says EU still in crisis mode
  • German finance minister Schaeuble says there’s far too much liquidity in markets
  • BOJ may consider raising Japan’s economic assessment after May policy meeting

Another slow start in Europe took off with AUD/USD flushing through stops at 0.9860 and then 0.9850. ACB’s were said to be the culprit, which was a surprise considering they’ve being on the bid for the last couple of years. So far any further rout has been kept in check by an option barrier at 0.9800, but there has been no bounce at all.

On it’s way down the pair trounced two long term tech levels and it looks like the floodgates may open to the 0.9600 area.

USD/JPY saw a slow start develop into a push up as short term shorts covered early in the London open. The lack of any major movement following the better than expected GDP data was a surprise,but noises from the BOJ that they may raise their economic assessment kept the pair well bid.

EUR/USD continued to kick it’s shoes around 1.2860 and a half hearted look below 1.2850 was soon bought up. We managed a similarly weak attempt at the upside following the EZ inflation report as the unchanged number dampened rate cut and negative rate talk for now.

GBP/USD has been stuck in a tight range with buying coming in at 1.5200 and any runs to the upside well sold into.