• Japan Internal Affairs Minister: Sharply reducing Japan Post JGB holdings is not an option. Investing more in foreign bonds a possibility for Japan Post. Up to Japan Post to make decision on its investment
  • India March manufacturing PMI falls to 57.8 from 58.5 in February
  • Shanghai share index ends up 1.2%, highest close in more than 2 months
  • UK’s John Lewis says weekly department store sales up 19%
  • German February retail sales -0.4% m/m, -0.9% y/y, worse than median forecasts -0.1%, -1.0% respectively
  • PIMCO: What European governments have done is not effective in fixing Greek problems. Credit rating downgrade for UK could be “within a year”, the U.S. would have more time. Underweighting UK, US and Pan-European 10 year sovereign bonds
  • Euro zone final manufacturing PMI revised up to 56.6 from flash 56.3
  • UK March manufacturingPMI rises to 57.2 from 56.5 in February, better than median forecast of 56.8. 15 year high
  • EU’s Barnier: May propose specific measures on sovereign credit default swaps in October. Says never used word “ban” on CDS, but does not rule it out. Bank tax needed to pay for bailouts, but open on form

Fantasmogorical. No, not really. Not even close. Some donut suggested I might like to spice up my headlines, so I gave it my best shot. Always willing to oblige, you know me.

Well, very little net change on the majors. The proximity of the Easter break, non farm payrolls release had traders sitting on their hands for the most part.

EUR/USD at 1.3500 is effectively where it stood 6 1/2 hours ago. Release of weak German retail sales data and Pimco comments hitting the wires (see above) helped cause an early swoon. We got to a session low 1.3476 before recovering. Talk of sell stops through 1.3450.

Cable at 1.5225, marginally firmer from early 1.5200. Sterling pretty much shrugged of PIMCO’s comments regarding UK credit rating downgrade “within a year.” It’s been heard before. Rather better than expected manufacturing PMI lent underpinning.

USD/JPY at 93.50, effectively unchanged on day. Retains bid feel, but early rally stalled at 93.73. Stops seen through 93.75 or 93.80, take your pick.

Bit of excitment in EUR’CHF. Started out around 1.4230 and fell to take out 1.4200 barrier interest, tripping stops just below and posting session low 1.4187. We’ve seen a marginal recovery to 1.4205 with still no reports of the SNB in the vicinity.