Euro Shrugs Auctions, onto US Data

French and Spanish bond auctions. The market will focus on jobless claims; existing home sales; Philly FED manufacturing and Eurozone consumer confidence. GBP could respond to Adam Posen speech during the afternoon.

The greenback was under pressure after the London session started but later erasd all losses. European equities are gaining about 0.75% and the relative strength winner is CAD while JPY is the weakest.

There were no European data releases during the London session. The focus was on the French and especially the Spanish bond auctions. France nearly reached a full take up as it sold various bonds worth of EUR 7.973 bln vs. EUR 8 bln target.

Spain had a solid auction as it sold EUR 2.541 worth of 2014 and 2022 bonds vs. EUR 2.5 bln target. 2014 bond averaged marginally higher yield 3.463% from 3.495% with improved cover 3.29 from 2.0 while the 2022 bond yield rose to 5.743% from 5.403% and cover improved to 2.42 from 2.2. The common currency strengthened on the release but quickly gave up most of its gains. It currently trades around 1.3115. The 10 year yield trades comfortably below the 6% mark around 5.80%.

The US session starts with jobless claims at 8:30 am ET that are seen at 370K after jumping to multiweek highs at 380K last week.

The next batch of data is due at 10:00 am ET. Existing home sales are seen higher in March at 4.62M from 4.59M and Philly FED manufacturing is anticipated slightly lower in April at 12.1 from 12.5. Eurozone consumer confidence is expected to remain steady in April at -19.

GBP could respond to MPC member Adam Posen's speech in Edinburgh that starts at 1:00 pm. Adam Posen's decision not to vote for additional QE underpinned GBP yesterday and the strength continues today. Financial markets could also react to G20 meeting that starts today in Washington. Topics for discussion include persistently high oil prices and IMF's calls to increase available resources.

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