The JPY and USD have made further gains overnight in Asia, with risk aversion very much to the fore as Asian stocmarkets post hefty losses. There is a lot of caution surrounding the U.S earnings season which has just started, and the release of Alcoa’s worse than expected March quarter loss has only served to heighten that caution.
Also serving to undermine sentiment is speculation General Motors is preparing for a bankruptcy filing.
Fed’s Fisher talking in Tokyo won’t have helped the mood either, the official saying the US economy is grim and faces a tough road, with the US jobless rate to surpass 10% this year.
Against this backdrop EUR/USD has fallen to 1.3180 from a North American close around 1.3270, while EUR/JPY has sold off to 131.60 from around 133.20, Much talk of a move to at least 130.00.
European economic data releases today;
06:30 GMT: Bk of France business sentiment (Mar)
06:45 GMT: French trade balance (Feb) expected -4.2 bln euros
09:30 GMT: UK BRC March shop price index
10:00 GMT: German factory orders (Feb) expected -2.1% m/m, -36.5% y/y