Friday in Asia, the US dollar showed mixed trading against its major counterparts. While the dollar eased from a new multi-month high against the yen, it pared recent gains against the European majors. The dollar thus recovered from a 10-day low against the pound.

Yesterday, the U.S. House of Representatives convincingly passed the $3.55 trillion budget put forth by President Barack Obama in the latest step in allowing the president to take on his ambitious objectives.

The House voted 233 to 196 along party lines to approve the budget, focusing on the expansion of health care coverage and financing for college, among other issues.

The Group of 20 Summit in London focused on promoting global trade and rejecting protectionism, leaders announced yesterday. The high-profile summit was convened as world leaders attempt to address the steepest global downturn since the Great Depression, and in the official communiqué, G20 members pledged to do whatever necessary to end the economic crisis.

In addition, members pledged to work on a united reform of the international regulatory system, with British Prime Minister Gordon Brown stating that the era of Washington Consensus, or the promotion of deregulation and free markets, is over.

In order to do this, G20 members have agreed to establish a new Financial Stability Board (FSB). The FSB will regulate hedge funds, along with other systemically important financial institutions.

The dollar lost ground against the yen after hitting a new multi-month high of 100.19 at 8:30 pm ET Thursday. As of now, the dollar-yen pair is worth 99.62 with 98.4 seen as the near term support level. At yesterday's New York session close, the pair was quoted at 99.46.

The dollar fell to 1.3496 against the euro and 1.1327 against the franc by about 8:20 pm ET Thursday. Thereafter, the dollar bounced back and it is currently trading at 1.3410 against the euro and 1.1380 against the franc, compared to yesterday's close of 1.3465 and 1.1340, respectively. If the dollar climbs further, it may likely target 1.334 against the euro and 1.149 against the franc.

The head of the European Central Bank hinted yesterday that policy-makers for the 16-nation currency could announce further non-standard policy measures in the next rate-setting session in May.

In comments following the bank's decision to cut its benchmark interest rate by a quarter percentage point to 1.25%, ECB President Jean-Claude Trichet also signaled that there is still room to cut the benchmark interest rate for Eurozone and said the world economy is undergoing a severe downturn.

Against the pound, the dollar slipped to a 10-day low of 1.4776 before reversing direction at 8:20 pm ET Thursday. The pound-dollar pair that closed yesterday's deals at 1.4729 is presently quoted at 1.4692. On the upside, 1.46 is seen as the next target level for the US currency.

In the European session, the German import price index, Swiss CPI, Italian PPI and the services PMI reports from major European economies are expected.

Turning to the US, all eyes will be on the Labor Department, which is scheduled to release its monthly non-farm payroll report at 8:30 am ET. Economists estimate that the U.S. economy lost 656,000 jobs in March and look for an unemployment rate of 8.5%.

The ISM is scheduled to release the results of its non-manufacturing survey at 10 am ET. The non-manufacturing index is likely to show a reading of 42 for March.

Also, Fed Chairman Ben Bernanke is due to deliver closing keynote address to Richmond Fed Bank's 2009 Credit Markets Symposium in Charlotte, North Caroline at 12 pm ET.

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