- Chinese Q1 GDP +11.9% YoY
- China’s March CPI slips to +2.4% from 2.7% in February, Industrial production +18%, Retail sales +18%
- UK March consumer confidence falls sharply
- Reuters Tankan survey sees improvement in Japanese corporate sentiment
- Australian inflation expectations rise over 4%
- Regional stock markets rise by 0.5% on average
The market had been relying on the Chinese GDP and CPI data to introduce some volatility but as they came in exactly on the levels which were leaked by Reuters yesterday, it turned out to be a non-event.
GBP was the biggest mover today, making decent gains against all the other majors. The market ignored the poor consumer confidence data and used the excuse of new election polls to target stops in the cable above 1.5500. These were triggered with ease and EUR/GBP also drifted lower throughout the session. Take-profit sell orders have stalled any further bullish drives in the cable and further offers of note are seen above 1.5550. Ranges: cable 1.5464/1.5518, EUR/GBP .8792/.8831.
USD/JPY has again been steady in a 30 pip range and with no Chinese surprises to test important resistance levels in the EUR/JPY 128.00 and AUD/JPY 88.00, trading has been uneventful. This market is tied in by solid orders either side of a 92.50/94.25 range.
The AUD/USD opened at .9360 and has been unable to muster any momentum to test the important .9410 level. The inflation forecasts were also ignored although they point to further rate rises. Range: .9330/64
EUR/USD has been weighed down by selling in the EUR/GBP and by the heavy resistance close by in the EUR/JPY. The big option play at 1.3700 has also encouraged traders to leave alone. Range: 1.3630/66.
Market: Nikkei +0.7%, HK +0.4%, Kospi flat. Gold $1158/oz, Oil $86/bbl.