NEWS / Foreign Exchange

German Current Account Reaches Multi-Decade High

- The European indices are currently trading in positive territory in the session but sit near session lows. The rise in the European indices was led by Rio Tinto, which rose sharply on increased speculation and rumors that BHP will make a bid to acquire the company.

- In a session light with economic data European government bonds are currently trading in negative territory on technical factors ahead of today??™s FOMC decision, and tomorrow??™s ECB decision. Similarly in the UK gilts are currently trading lower in the session ahead of tomorrow??™s BOE decision.

- The German trade balance rose to a surplus of ?‚¬18.4B, above expectations of ?‚¬15B, while the current account rose to a multi-decade high of ?‚¬17.2B.

- In line with the recent trend over the past 5 years, the French central government balance declined slightly to a deficit of ?‚¬24.7B

- Swedish industrial production for the month of March rose slightly to 1.4% m/m from 1.3% in February, and rose to 9.0% y/y from 6.8% for the same periods. The Swedish activity index level rose to 119.3 in March from 119.1 in February.

- The ECB??™s Weber said overnight that he sees no clear evidence that globalization has dampened inflation pressures. Weber said that ensuring stable money makes for good monetary policy that contributes to GDP and job growth.

- BRC shop prices were flat m/m in the UK; shop prices rose by 0.8% y/y.