NEWS / Foreign Exchange

European Forex Recap

• Dow Jones Industrial average closed Monday??™s session lower by 42.58 points at 12,919-40

• Australian CPI for Q1 came in disappointingly lower than expectations at +0.1% q/q from -0.1% q/q where the market had been looking for +0.6%. The rate y/y was 2.4% from +3.3% the month before against expectations of +3.0% y/y. On the data Aussie dropped from 0.8325 to 0.8240 causing the kiwi to follow falling from 0.7440 to 0.7400 (9.30pm EST)

• Cable falls from 1.9980 to 1.9955 as stops are triggered below 1.9970 on M&A news that Astra Zeneca reportedly agreed to buy US??™s Immune for US$15 billion in cash (10.20pm EST)

• FX rates as of 12.30am EST GBP/USD 1.9974/79  EUR/USD 1.3561/64  USD/JPY 118.52/55  USD/CHF 1.2091/95  USD/CAD 1.1235/40  AUD/USD 0.8250/54  NZD/USD 0.7411/15

• Nikkei 225 closed Tuesday??™s session a touch lower by 3.60 points at 17,451-77 (2.00am EST)

• Euro-dollar moves higher on decent demand from an Eastern European name rising from 1.3550 to 1.3570 (2.45am EST)

• Italian Consumer Sentiment in April was 107.8 from 112.6 in March. This was a 10 month low (3.30am EST)

• Aussie making a slight comeback off the 0.8230??™s lows climbing slightly but steadily up to 0.8265 before easing slightly back to its current level of 0.8258/62 (4.00am EST)

• Italian Retail Sales for February was +0.2% m/m +0.4% y/y after being flat y/y in January (4.00am EST)

• UK Public Sector Net Borrowing (PSNB) for March was ?‚¤8.483 billion from ?‚¤6.573 billion in March 2008. Public Sector Net Credit (PSNCR) for March was ?‚¤17.191 billion from ?‚¤15.882 billion in March 2008. Both releases came in higher than expected however cable did nothing trading at 1.9965/70 (4.30am EST)

• Euro-Land industrial new orders in February were -0.7% m/m from -0.1% m/m +4.7% y/y from a revised +12.2% y/y in January (5.00am EST)

• .UK Bank of England Governor Mervyn King on the wires from the MPC external Treasury Committee Meeting saying that he and the committee are completely determined to bring CPI to target and that there could be a sharp pull back over the next few months. He also adds that the CPI overshoot was not due to a failure of policy. Other Committee members also voicing their opinions in similar fashion (5.45am EST)

• Dollar-Canada breaks 1.1200 triggering an option barrier and with stop momentum makes a low of 1.1189 (6.05am EST)

• Cable on the MPC comments climb up from 1.9970 to a high of 1.2015/20 (6.15am EST)

• Sterling-yen also making a push higher on this cable strength soars from 236.50 to a high so far of 237.85 (6.40am EST)

• FX rates as at 7.00am EST GBP/USD 2.07/12  EUR/USD 1.3574/77  USD/JPY 118.82/85   USD/CHF 1.2066/70  USD/CAD 1.1201/06  AUD/USD 0.8263/67  NZD/USD 0.7410/14  .  

Economic data due out later today

8.30am EST   Canadian leading indicators for March

9.00am EST   Bank of Canada decision on Canadian interest rates

9.00am EST   Belgian Business Confidence for April

10.00am EST US Conference Board Consumer Conference for April

10.00am EST US Existing Home Sales for March

Ranges since 5pm EST on Monday

GBP / USD:                 1-9953             2-0024

EUR / USD:                 1-3547             1-3586

USD / JPY:                  118-23             118-96

USD / CHF:                 1-2058             1-2107

USD / CAD                 1.1189             1.1251

AUD / USD                 0-8232             0-8342

NZD / USD                 0-7470             0-7335