With Stock indices testing marginal new lows for the day Forex trading is surprisingly muted Dealers say. Once again the difference in market psychology from one day to the next is astonishing, especially in Stocks, but this latest reversal has an air of sentiment change about it. A recovery from the awful data we have been seeing is now in the market, but the size and the speed of any recovery is the subject for debate. For me, the most important figure this week will be US Jobless Claims data. A third week of a slowdown in claims will argue strongly that the pace of US job losses has slowed, but if we get back over 650,000 again it will show us that the preceding two weeks was just a seasonal Easter pullback. The focus on the banking side of equation now switches to the stress test and the longer that process takes the more nervous the markets will be.
Eur/Usd clings to 1.2930 while Cable manages to claw its way back above 1.4550.