- ECB’s Mersch: Impact of financial crisis is far from easing
- German March plant, equipment orders -35% y/y
- Italy March wage inflation +0.1% m/m, +3.5% y/y
- Euro zone March M3 annual growth 5.1%, lower than median forecast of 5.7%
- German government sees unemployment rising to average of 4.6 mln in 2010
- Euro zone April economic sentiment 67.2 vs revised 64.7 in March, better than median forecast of 65.2
- Swiss April KOP leading indicator -1.86 vs median forecast of -1.9. March revised to -1.65 from -1.79
Trading got off to a slow, inconclusive, start this morning. That all changed with the 09:00 GMT release of euro zone April economic sentiment data, which came in stronger than expected. This had the effect of ratcheting up risk appetite another notch or two.
EUR/USD took out buy-stops in 1.3215/20 area on the news and hit a session high 1.3246 before settling back, presently at 1.3230.
Cable had been banging up against noted sell interest at 1.4730-80 before the aforementioned release. That all changed on the release and cable managed to post a 1.4794 session high before settling back, presently at 1.4765.
Rumours also circulated this morning that China is preparing to cut rates again. They last cut on December 22, from 5.58 to 5.31. It’s only speculation, but it will have helped underpin improved risk sentiment. Any stimulus is good news.