NEWS / Foreign Exchange

European Forex Recap

• Dow Jones Industrial average closed Monday higher by 108.33 points at 12,720-46.

• FX rates as of 12.00am EST GBP/USD 1.9896/01  EUR/USD 1.3534/37  USD/JPY 119.56/59  USD/CHF 1.2134/38  USD/CAD 1.1320/25 AUD/USD 0.8326/30  NZD/USD 0.7391/95

• Japan??™s Nikkei 225 closed Tuesday down by 100.85 points at 17,527-45 (2.00am EST)

• G7 Communique, Fukui reportedly saying in the Japanese parliament that the communiqu?© was not enough to eliminate risks stemming from some financial transactions including JPY carry trades. Dollar-yen has fallen from 119.50 to current level of 119.24/27 over the last 45 minutes (2.45am EST)

• UK CPI for March coming in at 3.1% y/y breaking the Bank of England??™s 3% ceiling. Cable on the news takes out barriers reported to be at 1.9950 and then again at 1.9975and pushing higher to a current level of 1.9994/99. Further barriers and corporate interest said to be at 2.000 (4.35am EST)

• Cable briefly breaks 2.00but 2 US banks hit the bid at 2.0005 and drove it back below 2.000 (4.45am EST)

• German ZEW economic expectations for April +16.5 from +5.8 in March, the market had been looking for +10.0 and on the release Euro-dollar marginally higher by 5 pips at 1.3542/45 (5.00am EST)

• Bank of England Governor Mervyn King says that he expects UK CPI to fall back lower in a matter of months(5.30am EST)

• Cable being paid up again as option barriers are taken out as we make a new high of 2.0037 (6.30am EST)

• FX rates as at 7.00am EST GBP/USD 2.0011/16  EUR/USD 1.3543/46  USD/JPY 119.39/42  USD/CHF 1.2105/09  USD/CAD 1.13127/17  AUD/USD 0.8335/39  NZD/USD 0.7399/03

Economic data due out later today

8.30am   US CPI for March

8.30am   US Housing Starts for March

8.30am   Canadian Manufacturing Shipments for February

9.15am   US Capacity Utilization for March

9.15am   US Industrial Production for March

Session Ranges

GBP / USD:                 1-9892             2-0037

EUR / USD:                 1-3527             1-3549

USD / JPY:                  119-15             119-68

USD / CHF:                 1-2112             1-2138

USD / CAD                 1.1309             1.1342

AUD / USD                 0-8313             0-8340