• Swiss April (sa adj) unemployment 3.4%, exactly as expected. 3 year high
  • German March (sa adj) trade surplus 8.9 bln euros vs 8.9 bln in February. Better than median forecast of 8.0 bln
  • S.Korea fx authorites suspected of buying dollars to curb won’s sharp rise
  • ECB’s Bini Smaghi: Euro zone inflation seen close to zero or even negative in coming months
  • Economic Cycle Research Institute (ECRI): Future euro zone inflation gauge hits 84.6 in March from 86.3 in Febraury, new low
  • UK April PPI output prices +0.6% m/m, +1.2% y/y. Lowest annual rate since April 04
  • German EconMin Guttenberg: German economy will not recover swiftly after bottoming out
  • German commercial vehicle April exports down 76%, production down 72% – VDA
  • German FinMin Steinbrueck sees 2009 deficit of 3.9% of GDP
  • German March industrial output flat m/m, better than median forecast of -1.3%. But February’s contraction revised downward to -3.4% from initial -2.9%
  • ECB’s Liikanen: We have not decided 1% is lowest rate. Current rate is appropriate

Generally very slow morning on the majors, the market effectively on hold ahead of US jobs data.

AUD and CAD continue to be two of the main beneficiaries of increased hopes for early global economic recovery/improved risk sentiment. CAD especially has seen good strength this morning.

EUR/USD tried to rally early, but kept banging up against Bank of China sell interest in the 1.3420/30 area. At 1.3390 presently, is effectively unchanged on the day.

USD/JPY touch firmer, yen underminned by improved risk sentiment. Some sell orders noted at 99.60. Good buy orders seen down at 98.70/80.

Cable very quiet for a change, up very marginally at 1.5030.

Just as an after-thought. Here’s some blurb on US bank stress test results, which were greeted very calmly by markets overnight.