Out of a projected of  Eur 7-8 bln

Sold  Eur 3.545 bln of 0.75% Sept 2014 BTAN, yield 0.85%, cover 2.286

Sold Eur 1.73 bln of 3.5% April 2015 OAT, yield 1.06%, cover 3.0

Sold Eur 2.698 bln of 1.75% feb 2017 BTAN, yield 1.83%, cover 2.695

Spanish auction went OK.   As Mr Ostwald said on Bloomberg TV, there was ‘more than enough’ demand for the Spanish offering and he was right!!

EUR/USD  garnered a marginal lift from the results, but not alot of followthrough.  From 1.3164 post results high we’re back down at 1.3150. Kinda “buy the rumour, sell the fact” price action, the market having positioned for a good result (well those who listened to Mr Ostwald) and quick to book profits. Story of the markets at the moment unfortunately.

All rather mundane….as usual.

Out of a projected Eur 1.5-2.5 bln

Sold  Eur 1.12 bln of 3.3% 2014 Bono, cover 3.29( from 2.0), yield 3.463% (from 3.495%)

Sold Eur bln of  5.85% benchmark 2022 Obligacion bond, cover 2.42 (from 2.2), yield 5.743% (from 5.403%)

As Gerry mentioned earlier demand was high, with yields worse, but better cover and prompted a small spike to session highs in the EUR/USD

UK DATA: SMMT March new car production rose 0.3% Y/Y, Q1 up 12.3% on
year ago quarter.

Morning all apologies for my absence yesterday…

EUR/USD:  Bids 1.3100/10, likely sell stops below and through 1.3050. Offers 1.3165/75 stops above.

GBP/USD: Buy stops up through 1.6075, offers 1.6090/00 and 1.6115/25, bids 1.6015/20, and 1.6000/10. (Watch for a weekly close above 200 week MA of 1.5757)

EUR/GBP:  tech support 0.8165 (50% of 0.6535/0.9797), 0.8140 (Aug 23 2010 lows). |offers 0.8190/00

EUR/JPY:  Buy stops up through 107.10 and 107.50.  Talk of bids 106.50/60 and sovereign bids 106.15/20

USD/JPY:  offers 81.60/80 likely stops through 82.00. Bids 81.20/25 and 81.00/05

AUD/USD: Bids 1.0340/50 stops below, ahead of better bids 1.0300/10. Tech lvl 200 day MA at 1.0374, Offers from 1.0385/00 and stronger up at 1.0415/20

AUD/JPY:  Large offers from 84.80

USD/CHF: Offers 0.9175/80 and 0.9215/20. Bids 0.9150/55 and 0.9125/30

EUR/CHF:  Offers 1.2025/30 and tech res 1.2035/40. Bids 1.2015/20 and 1.2000/10 (SNB and 1.2009-200 day MA)

USD/CAD: Bids 0.9880/85, offers 0.9920/25

EUR/CAD: Stop loss/ buy orders through 1.3050, 1.3150. Sell stops down through 1.28

FRANKFURT (MNI) – The European Central Bank published Thursday its
Eurosystem Oversight Report 2011 outlining oversight policies and the
main activities undertaken since the previous report published in
late 2009. Following is the text of the ECB’s press release:

The European Central Bank (ECB) has today published the Eurosystem
Oversight Report 2011, which provides information on the Eurosystems
oversight policies and main oversight activities between the late summer
of 2009 and the late summer of 2011. The previous and first Eurosystem
Oversight Report was published in November 2009.

The report comprises four chapters and three annexes. Chapter 1
provides an update on the Eurosystems oversight policies and reports on
EU legal initiatives that are relevant for the Eurosystem’s oversight
function. It also summarises developments in oversight standards, and
reports on existing and new cooperative oversight arrangements as well
as on the activities performed within these arrangements. Chapter 2
presents the Eurosystems main oversight activities. Chapter 3 gives an
outlook for future activities, which will include, in particular, a
review of the Eurosystem’s oversight policies once the new principles
for financial market infrastructures being developed by the Committee on
Payment and Settlement Systems (CPSS) and the International Organization
of Securities Commissions (IOSCO) have been finalised. Finally, Chapter
4 contains three articles, entitled “Progress in OTC derivatives market
reform: a Eurosystem perspective”, “TARGET2 transactions: data and
analysis” and “A survey on the role of technological service providers
in retail payments in Italy and in Greece”. Annexes to the report
provide details of oversight policy documents and links to Eurosystem
central banks websites, where more information on overseen
infrastructures and arrangements can be found.

The Eurosystem Oversight Report 2011 is produced as part of the
oversight function of the Eurosystem, the objective of which is to
promote the smooth operation of payment systems.

[TOPICS: MT$$$$,M$$CR$,M$X$$$,M$$EC$]

Weaker than median forecast of -1.1% m/m.

Presently at 405 bps from the 410 I noted first thing.

EUR/USD has caught a bit of a bid, presently at 1.3138 having been as high as 1.3146.   We remain very much rangebound though when all said and done.

Has tacked on nearly half a cent in early European trade, presently at  session high 1.6070.

Talk of buy stops now through 1.6075.

Just getting reports of central bank seller in market at the moment. Will they be able to slow the express or even halt it? We’re about to see.

UPDATE:  1.6057 offered.  Well at least the central bank seller slowed the express if nothing else

ANOTHER UPDATE:  1.6050 offered. Ooooh I say, who was that masked man. Soooo strong, soooo dominant   That’s your lot for the day on cable Nutters’ pairing (guess that’s why Joe used to trade it)

Loose lips sink ships!!

• Sees Italy economy improving next year (well ofcourse you do)

France sells a new 2 year benchmark 0.75% September 2014 BTAN issue and also taps 5 year benchmark 1.75% February 2017 BTAN and off-the-run 3.50% April 2015 OAT.

Target amount: Lumpy 7.0-8.0 bln euros

Results due some time after 09:00 GMT.

Spain to tap 3.30% 2014 Bono and 10 year benchmark 5.85% 2022 Obligacion bond this morning.

Target amount:  1.5-2.5 bln euros

Results due around 08:40 GMT

Chap called Marc Ostwald, strategist for Monument Securities Ltd, on Bloomberg TV apparently opining that there’s ‘more than enough’ demand for Spain bonds. Comments come  ahead of today’s Spanish auctions, details of which will be forthcoming in the very near future.

If he’s on Bloomberg TV one would think he knows his onions, right?  We’ll see in due course.

EUR/USD sits at 1.3121, up 6 pips since I sat down.  It’s all go again!!!

We’ll see in due course I guess.

Interesting.

Personally I’m still happy to use the 10 year for comparison purposes.

Financial bookies see FTSE opening up around +0.2%, DAX down around -0.1% and CAC 40 down around -0.3%.

JAPAN DATA: BOJ’s March real export index rose seasonally adjusted 1.9%
m/m to 118.9 (100 for the 2005 base year) after +0.3% in Feb, no change
in Jan. March reading was highest since 124.0 in Sep 2011. BOJ’s real
import index rose seasonally adjusted 3.8% in March, vs -8.5% in Feb and
+6.1% in Jan, to 105.8, the highest since 111.4 in Dec. The BOJ
calculated the indexes based on unadjusted March trade data released by
the Ministry of Finance earlier, which showed +5.9% y/y in exports and
+10.5% in imports. The BOJ export index hit a recent bottom of 77.6 in
February 2009 following the collapse of Lehman Brothers in September
2008.

The official says the above warrant special attention.

Yamaguchi, in a speech to the Japan Chamber of Commerce and Industry,  promised the bank would take appropriate policy action as needed to support companies.

Comments (along with those of head honcho Shirakawa) helping fuel hopes of further monetary easing, lending USD/JPY support.

The pairing up at 81.40 from North American close Wednesday down around 81.25.

• Australia must be prepared for global uncertainty
• Surplus gives RBA room to move on monetary policy
• ‘Plenty of room’ for RBA to move rates if needed
• Australia governments face structural fall in revenues
• Australia is returning to prosperity in 2012

Bloomberg reporting.

Gillard has promised a budget surplus in the fiscal year starting July 1, ending a run of four years of budget deficits.

AUD/USD sits at 1.0360, effectively unchanged from where it closed out in North America Wednesday.

Got any ideas you’d like to share with your fellow readers, then here’s where to stick ‘em.

• The BOJ Governor Shirakawa made the comments on a visit to the US
• Japanese exports improve as easing Yen helps the cause
• IMF Lagarde: Funding pledges now at $316 billion
• BOK Kim: Steady economic growth to continue
• EUR/USD: Talk of large exotic options expiring tomorrow
• Brazil’s central bank cuts rates to 9.00% from 9.75%
• New Zealand’s CPI rose by 0.5% in March quarter
• Nikkei falls by 0.6% after opening 1% lower, other regional Bourses pretty flat on average
• Gold $1642/oz, Oil $102.75/bbl

Another very quiet Asian trading session with only some very modest Yen weakening to report. The comments from the BOJ chief ahead of next week’s meeting were taken as pro-easing measures and USD/JPY eased slowly higher towards the overnight highs. The going has been slow with corporate sell orders killing bullish momentum. There was unconfirmed talk this morning of ACB interest to buy EUR/JPY, low on the 106 handle. Ranges: 81.17/57, EUR/JPY 106.51/98

AUD/USD has traded in a 40 pip range amid light flows and neutral sentiment, range 1.0344/86

EUR/USD has also been quiet, with many awaiting the Spanish debt auction results before committing to trading strategies. EUR/GBP has consolidated after a bearish technical break overnight and the EUR is also struggling against other European currencies like the SEK. Nevertheless, the big Sovereign interest either side is still reputed to be in place. Range: 1.3108/31.

Cable traded 1.6011/34, EUR/CHF 1.2013/23