The London session witnessed a reversal in most of the overnight price action. European bourses could not match the jump in Asian equities and are currently up a modest +0.6% on average. This has taken some of the air out of riskier currency trades on the follow. EUR/USD slipped -75 pips towards 1.3230/40 ahead of the NY open. German industrial production was a touch better than expected for February but the annual rate of decline dipped to -20.6% from -17.9% nonetheless – a new record low. EUR/USD now sees immediate support into 1.3230 and below should see a quick spill to 1.3200 next.

The BOE rate decision tuned out to be a non-event as the bank kept rates steady at the record low 0.50% while making no change to their already announced quantitative easing program. Cable had already been hammered more than -110 pip towards 1.4630 in London trading and now has the 200hr just below 1.46 here.
Look for a dip below there to potentially see weakness accelerate.

The yen crosses were mixed with USD/JPY barely budging and currently near 100.15 while EUR/JPY dipped -70 pips towards the 132.50/60 zone. US equity futures remain near the bottom of the overnight range and it will be interesting to see whether traders want to be long into a three-day weekend and ahead of bank earnings next week. Further weakness in shares should see the yen crosses come under pressure, especially EUR/JPY. Economic data in early NY in the form of initial jobless claims and trade has potential to send stocks reeling. Stay tuned!

Upcoming Economic Data Releases (NY Session) prior expected

  • 4/9 12:30 GMT CA Int'l Merchandise Trade FEB -1.0B -1.2B

  • 4/9 12:30 GMT CA New Housing Price Index MoM FEB -0.60% -0.50%

  • 4/9 12:30 GMT US Trade Balance FEB -$36.0B -$36.0B

  • 4/9 12:30 GMT US Import Price Index (MoM) MAR -0.20% 0.90%

  • 4/9 12:30 GMT US Import Price Index (YoY) MAR -12.80% -14.70%

  • 4/9 12:30 GMT US Initial Jobless Claims 4-Apr 669K 660K

  • 4/9 12:30 GMT US Continuing Claims 28-Mar 5728K 5800K

  • 4/9 16:00 GMT EC ECB's Mersch Speaks At Event In Luxembourg

  • 4/9 16:15 GMT US Fed's Stern Speaks in Sioux Falls, South Dakota

  • 4/9 17:00 GMT US Fed's Hoenig Speaks on U.S. Economy

  • 4/9 US ICSC Chain Store Sales YoY MAR -0.10% -0.8%