European Summary and Highlights 30 Apr

European morning session

EUR/USD gained around 25 pips in the European morning, reaching 1.0730, benefitting from stronger than expected Eurozone GDP data. Q1 GDP came in at 0.3% q/q against a market consensus of 0.1%, with all the big 4 countries reporting GDP grew more than expected. Eurozone HICP for March was also released, and while the headline rate was as expected at 2.4% y/y, the core was slightly stronger than expected at 2.7%. Other data included German retail sales, which were stronger than expected on the month in March, although the underlying trend remains fairly flat, and German unemployment which rose a tad more than expected at 10k in March.

The EUR aside, the USD made some early gains but finished the session little changed against most currencies. 

Asia session

While there has been no confirmation of intervention from Kanda, his words "We are ready 24 hours, so whether it's London, New York or Wellington, it doesn't make a difference." and price action seems to suggest they have intervened. USD/JPY is relatively quiet compared to Monday's volatility. In the short run 160 will be a psychological line in the sand for market participants. USD/JPY is slowly grinding upwards and is trading 0.3% higher at 156.78 after touching 157 figure earlier in the session as JGB sinks further than U.S. Treasury in yields.

The Australian March Retail Sales came in lower at -0.4% m/m vs expected at +0.2%. This confirms the domestic demand continue to weakens as savings deplete and real wage remain low. With USD trading broadly lower and Chinese equity reversing earlier gains, Aussie is taking a blow. AUD/USD is trading 0.52% lower at 0.6532, NZD/USD also 0.56% lower at 0.5944 while USD/CAD rose 0.19% as oil slips forty cents. Else, EUR/USD is down 0.15% and GBP/USD is down 0.16%.