NEWS / Foreign Exchange

European Forex Recap

• Dow Jones Industrial average closed on Thursday higher by 4.79 points at 12,808-63

• Japans Yomuri Shimbun saying that the Bank of Japans economic report due out next Friday will revise the CPI forecast down from 0.5 to 0.3 due to lower oil prices. The article had little impact on the currency and the JGBs.

• Aussie barrier option reportedly at 0.6400 seems to cap the currency for the moment

• FX rates as of 11.00pm EST GBP/USD 2.0023/28  EUR/USD 1.3615/18  USD/JPY 118.63/66  USD/CHF 1.2051/55  USD/CAD 1.1281/86  AUD/USD 0.8340/44  NZD/USD 0.7430/34

• Nikkei 225 ended the week higher by 80.65 points at 17,452-62 (2.00am EST)

• Sterling-yen has made a comeback from yesterdays lows of around 235-40 to currently trade around 238-25 (2.20am EST)

• French Consumer spending on manufacturing goods for March was +0.7% m/m +6.3% y/y after a downward revision in February of -0.5% m/m (2.45am EST)

• Bank of England Governor Mervyn King  once again on the wires reiterating that he still expects CPI to be closer to its 2.0% target once short term factors subside.(2.50am EST)

• UK Retail Sales for March came in lower than expected at +0.3% m/m +4.8% y/y. However the data for February was revised slightly higher to +1.6% m/m +5.1% y/y. Cable on the news fell from 2.0040 to 2.0015 but then bounced back to 2.0030 (4.30am EST)

• Cable coming under further pressure post Retail Sales dipping briefly through 2.00 to 1.9994/99 before moving back to the 2.0015 area (5.00am EST)

• FX rates as at 7.00am EST GBP/USD 2.0030/35  EUR/USD 1.3603/06  USD/JPY 118.68/71  USD/CHF 1.2066/70  USD/CAD 1.1282/87  AUD/USD 0.8344/48  NZD/USD 0.7443/47

Economic data due out later today

8.30am EST Canadian Retail Sales for February

Session Ranges

GBP / USD:                 1-9995             2-0070

EUR / USD:                 1-3600             1-3638

USD / JPY:                  118-53             118-82

USD / CHF:                 1-2038             1-2078

USD / CAD                 1.1272             1.1302

AUD / USD                 0-8339             0-8354

NZD / USD                 0-7426             0-7460