- Rumors Allied Irish Bank (more than 90% government owned) had missed interest payment prompts wider bond spreads, profit-taking
- Fed’s Fisher: Wind down QE2 in June
- Richmond Fed index falls to 20 in March from 25 in February
- Ireland’s Noonan: 12.5% corporate tax rate non-negotiable though open to other adjustments
- Portuguese opposition continues to vow to vote against austerity measures
- Protests in Syria and Egypt today in addition to Yemen and Bahrain. Oil firms to $105 in May futures
- US yields unchanged at 3.33%
EUR/USD slipped in early US trade after failing to overcome the latest barrier at 1.4250. The BIS was a seller into strength today. Portuguese and especially Irish concerns helped prompt profit-taking, sending EUR/USD to 1.4180 support before stabilizing. Sovereign demand remains rumored on dips.
GBP/USD extended its gains after overcoming the 1.6350 barrier after very strong UK inflation figures. Central banks took profits all the way up to the 1.6400 area but dips were shallow during US trade, only to the 1.6370 area. A UK clearing bank issued a sell recommendation at 1.6380 for a decline to 1.5700 with a stop at 1.6725.
USD/JPY was moribund in a 80.90/81.05 range. Traders see better opportunity elsewhere…
Sovereign debt and Mid East strife helped prompt a dip in EUR/CHF after its rally stalled just ahead of 1.2900. We end in the States at 1.2835.