NEWS / Foreign Exchange

European Forex Recap

• Dow Jones Industrial average closed higher by 52.58 points at 12,773-04 on Tuesday.

• New Zealand CPI for Q1 +0.5% softer than market expectations slipping from 0.7450 to 0.7420 before bouncing higher to 0.7470 on the basis of the tradeable component posting a strong +1.2% (6.45pm EST)

• FX rates as of 11.40am GBP/USD 2.0083/88  EUR/USD 1.3585/88  USD/JPY 118.58/61  USD/CHF 1.2063/67  USD/CAD 1.1292/97  AUD/USD 0.8369/74  NZD/USD 0.7482/86

• Japanese data leading indicators for February revised to 27.3 from a preliminary  figure of 30.0 to 27.3 and the coincident indicator from 16.7 to 30.0 (1.00am EST)

• Nikkei 225 closed higher by 139.88 points at 17,667-33 on Wednesday (2.00am EST)

• Cable continues to look firm trading currently just below 2.0100 at 2.0094/99 (2.15am EST)

• French current account deficit for February widened slightly from -?‚¬2.7 billion in January to -?‚¬3.3 billion (2.45am EST)

• UK unemployment data shows the claimant count at -9,000 in March better than the expected -5,000. Average earnings in February 4.6% from 4.2% in January and average earnings ex-bonuses 3.6% in February which was the same as the number in January (4.30am EST)

• Bank of England Monetary Policy Committee minutes from it??™s April meeting show the MPC voted 7 ??“ 2 in leaving UK interest rates unchanged. Tim Besley and Andrew Sentence were the 2 dissenters who voted for a 25 basis points rate hike (4.30am EST)

• Cable on the MPC minutes and the employment data rocketed from 2.0090 to 2.0130 (4.30am EST)

• Euro-land construction production in February was +0.9% m/m +10.4% y/y from +0.3% m/m +9.1% y/y in January (5.00am EST)

• Euro-dollar on the news breaking 1.3600 to post a high of 1.3615 (5.05am EST)

• Cable lower as traders take profit on their long positions now trading at 2.0101/06 (6.40am EST)

• FX rates as at 7.00am EST GBP/USD 2.0106/11  EUR/USD 1.3602/05  USD/JPY 118.59/62  USD/CHF 1.2033/37  USD/CAD 1.1305/10  AUD/USD 0.8365/69  NZD/USD

 Economic data due out later today

No significant economic data due out today however ECN President Trichet will be making a speech at the ISDA Conference in Boston at 10.00am EST

Session Ranges

GBP / USD:                 2-0073             2-0132

EUR / USD:                 1-3580             1-3615

USD / JPY:                  118-52             118-90

USD / CHF:                 1-2027             1-2073

USD / CAD                 1.1278             1.1323

AUD / USD                 0-8358             0-8376

NZD / USD                 0-7451             0-7491