- S&P: If Japan’s fiscal position erodes further could lower sovereign ratings
- Japan PM Kan: Not thinking of calling snap general election now
- Japan Noda: Upper House poll will lead to start of multiparty debate on sales tax, other tax reform
- German FinMin: Wider bank stress tests important to counter uncertainty on markets
- UK Q1 GDP (final) unrevised +0.3% q/q, -0.2% y/y (as expected) ONS says UK’s peak-to-trough fall in GDP revised to 6.4% from 6.2%
- UK Q1 c/a gap 9.628 bln vs Q4 2009 surplus of 521 mln, equivalent to 2.7% of GDP, biggest deficit since Q3 2007
- UK April services output -0.3% m/m, +1.0% y/y, biggest monthly fall since January
- French May c/a balance -4.5 bln euros – Bk of France
Yen has seen some general strength this morning, recovering from weakness seen in Asia overnight in wake of government’s demise in Upper House election. USD/JPY down at 88.60 from early 89.05, while EUR/JPY is down at 111.35 from early 112.20. Talk of stops through 88.50, buy orders 88.00/20.
EUR/USD down at 1.2570 from early 1.2600, having been as low as 1.2550 after stops tripped through 1.2580. Worries surrounding euro zone bank finances never far from the surface.
Cable at 1.5025 effectively unchanged on morning. Inbetween however pairing got as low as 1.4950, most of the slippage seen prior to the release of final Q1 GDP data. Obviously some caution given release had been postponed. After slight slippage post release cable has enjoyed what can best be described as something of a relief rally.