Prior to the anticipated and more challenging auction of long term 2 and 10 years bonds on Thursday, Spain sold 3.18 billion worht of short term 12 and 18-month treasury bills just above its 2-3 billion target. The bid to cover ratio was 2.9 on the 12-months bill from 2.1 last auction, while 3.8 on the 18-month up from 2.9 in March. Yields on the 12-month was at 2.623 percent up from 1.418 previously, and 3.110 percent on the 18-month up from 1.711 last month. Although yields jumped at this auction demand remained strong.
Meanwhile, the euro zone inflation figures on the consumer front over yearly basis remained stable at 2.7% while March reading showed prices accelerated at 1.3% rate from 0.5% in February above estimates of 1.2% rise.
On the sentiment side, the gauge of institutional investors and analysts in the form of the ZEW sentiment index jumped to 13.1 from 11.00 last month in the euro zone, beating estimates of a slight drop to 10.7.
The data supported the euro recovery in addition to the overall market mood, thus pushed high yielders higher. The EUR/USD is currently trading in the positive territory at 1.3153 after opening the trading session at 1.3141.
Inflation data from the U.K. showed year on year CPI ticked higher to 3.5%, from 3.4% the year ending February. While monthly numbers slipped to 0.3% from 0.6% in February. Meanwhile, retail price index which measures the price of goods and services purchased by consumer for the purposes of consumption declined to 3.6% from 3.7% in February.
The GBP/USD traded higher this morning after kicking off the session at 1.5899 the pair rallied to print a high at 1.5970 currently trading in the positive territory above 1.5950.
The USD/JPY rebounded slightly today as jitters ease, the pair rebounded after printing a low yesterday at 80.29 currently trading above 80.65. In general 80.00-80.50 area should form a strong support and directional juncture for the pair within the upcoming period, in anticipation for the next awaited meeting for bank of japan's officials on monetary policy by the end of this month.
Markets continue to anticipate some important economic releases. From the U.S., housing data at 13:30 GMT, followed by industrial production and capacity utilization figures. Meanwhile, Bank of Canada will announce its rate decision alongside the regular economic statement.