European morning wrap: Return of the living dead

IMF's Lagarde; Urges indebted countries in Europe and elsewhere to reduce budget deficits gradually to preserve growth German March industry output +2.8% m/m, much better than expected Saudi oil minister Naimi: Oil prices still high.  Asked if OPEC should raise output target next month says "we have to wait for the OPEC meeting" NY Fed's Dudley: Calls for greater international coordination of economic and regulatory policies Greek parties have little chance of forming government - Der Speigel Umbrella sales are up 5000% but sales slump puts UK firmly back in recession - Guardian House prices falling steeply, says Royal Institution of Chartered Surveyors - Guardian Zombie forex markets rool ok!!!  This is getting beyond a joke. General risk off environment;  eurostoxx 50 off circa 1.25%, oil off a buck or so and gold down 10 bucks from when I arrived. Another session of  forex tedium.  EUR/USD down at 1.3020 from the 1.3030 which greeted me first thing (that's right, 10 pips), having been as low as 1.3001. Early reports had buy orders clustered down at 1.3000/10, and despite numerous attempts the euro bears never managed to clear them out of the way.  Light sell stops said to lie just south of said level. BIS has been seen on both sides of the EUR/USD market this morning, helping to keep things narrow rangebound. USD/JPY down at 79.80 from early 80.00.  Buy orders seen layered 79.70 down to 79.50, sell stops below there. US treasury yields have come lower in the general risk off environment, which hasn't helped the USD/JPY cause.  Benchmark 10 year yield down at 1.8419% from early 1.8716%  Cable down marginally at 1.6135 from early 1.6170.