Quiet London session as markets focus on US Payrolls

UK Pensions Minister James Purnell resigns and calls on Prime Minister Gordon Brown to quit too.
UK Q1 Construction output falls 9 % q/q, ONS likely to revise Q1 GDP to -2.2% from -1.9% as a result.
UK PPI meets expectations, factory costs fall at sharpest rate in 7 1/2 years.
Swiss inflation falls by 1% y/y in May more than the market forecast of minus 0.9%
Bundesbank slashes its 2009 growth contraction to minus 6.2 % from the 0.8% fall projected last December.
ECB’s Hurley says that ECB has not taken any decision that current interest rate is the lowest
ECB’s Trichet says ECB measures show some signs of a revival in European money market functioning. *SNB’s Hildebrand says will not hesitate to follow through with far reaching monetary policy actions A pretty quiet morning session in comparison of late with players squaring positions before the all important Non-Farm Payroll report. Cable was put under early pressure after the resignation of UK minister James Purnell and his call for Prime Minister Brown to step down. Cable reached a low at 1.6020 before buyers returned to push it up to the morning’s highs that we see now at 1.6095. Eur/Usd was also subdued with a gentle grind lower to 1.4150 from 1.4230 followed by a mild bounceback into the 1.4175 region. Continuing concerns over Latvia weigh. Usd/Jpy was buoyed by the continued rise in US bond yields to challenge selling interest in the 96.85/90 region.

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