the next data was issued
09:00 EU(15) Trade balance (March) unadjusted, bln -2.3 0.8
The dollar drifted down versus
the euro on Friday, pressured by the contrast between Thursday's
weak U.S. jobs and manufacturing data and forecast-beating
growth figures from the euro zone.
The U.S. data injected a hint of doubt into market
expectations that the Federal Reserve's aggressive cycle of
interest rate cuts is over.
EUR/USD: Opened
in early Europe around $1.5495. Further demand into early Europe took
rate to an early high of $1.5502, though the initial move came with a
lack of momentum as the pair eased back to $1.5470. Decent interest to
buy the dip pushed the pair back above $1.5500 later in the morning, a
Swiss private bank then said to be capping from $1.5515. Rate did
manage to break though to $1.5522 before slipping back to go into early
US trade back around $1.5465. Offers $1.5520/30, $1.5550, stops above,
offers $1.5570/75. Bids $1.5450, stops under $1.5410
GBP/USD: Opened early Europe at $1.9475. Bids
placed ahead of $1.9450 provided a cushion, the buying taking rate back
through the overnight high and on to $1.9523. Reported offers placed
between $1.9520/25 proved strong enough to contain, with rate sinking
back to $1.9460. Cable settled around $1.9500 ahead of the NY open.
Cable bids $1.9480/70, $1.9450. Offers $1.9520/40, $1.9550/60
USD/JPY: Opened in early Europe around Y104.54.
European dealing opened with dollar-yen slipping to fresh lows for the
day, stops going off under yesterday's NY low, with the base extended
to Y104.16. A decent bounce saw rate coming back to Y104.70, with
traders noting large expiry interest at Y104.75 for the NY cut possibly
having an influence on the pair. Dlr-yen bids Y104.15/00, stops below,
offers Y104.90/00, stops Y104.15
US data starts at 1230GMT, when US housing starts are expected to slow further to a 940,000 annual rate in April, as builders continued towrestle with the huge inventory overhang of unsold new homes. At 1355GMT, the Reuters/University of Michigan Consumer Sentiment Index is expected to fall to 62.0 in early May after a sharp decline in the previous month.