21.05.2008 16:46

European session: market waits for FOMC Minutes

the next data was issued
08:00 DE IFO business climate index (May) 103,5 102.1 102.4
08:30 UK Bank of England Minutes 8:1
08:30 UK M4 money supply (April) provisional 0.7% 0.8%
08:30 UK M4 money supply (April) provisional Y/Y 11.2% 11,9%
08:30 UK PSNCR (April), bln 0.99 12,7
11:00 CAD CPI excluding food and energy (April) Y/Y 1.5% 1.3%
11:00 CAD CPI (April) 0.8% 0.4%
11:00 CAD CPI (April) Y/Y 1.7% 1.4%
11:00 CAD CPI excluding food and energy (April) Y/Y 0.3% 0.2%

The euro rose one cent against the dollar and climbed to the highest in three weeks versus the U.K. pound after German business confidence unexpectedly increased.

The euro also gained versus the Japanese yen after the Munich-based Ifo institute said its business-climate index rose in May. The yen advanced to the highest in more than a week against the dollar as a decline in European and Asian stocks prompted investors to pare holdings of higher-yielding assets funded in the Japanese currency. The Australian dollar rose to a 24-year high against the U.S. currency.

EUR/USD: Opened in early Europe around $1.5671. European dealing opened with rate easing to marginal lows for the day under $1.5640, the move coming with a lack of momentum as traders awaited the German Ifo survey. With the release coming in stronger than expected, euro-dollar spiked higher, pushing back above $1.5700 and trading to a $1.5739 initial high. Rate remained buoyed on a $1.57 handle for the remainder of the morning and made late highs above $1.5770 ahead of the US open.
GBP/USD: Opened early Europe at $1.9679. Cable came under sell pressure in early European dealing, sales from a US investment house and a Swiss private bank pressured rate to a low of $1.9627, but demand between $1.9630/20 was able to contain. Cable edged to $1.9655, pushing to $1.9685 after 'no surprise' BOE Minutes.Cable bids $1.9625/15, $1.9600. Offers $1.9685/00, $1.9720
USD/JPY: Opened in early Europe around Y103.33. European dealing opened with dollar-yen struggling to pull away from the lows, though the pair did edge higher over the course of the session, taking out minor offers at Y103.50. Rate was unable to get past the Asian high at Y103.69, later coming back to lows for the day at Y103.07. Dlr-yen offers Y103.70, stops Y103.80/0, offers Y104.20, bids Y103.00

The minutes of the April 29/30 FOMC meeting are due at 1800GMT.