Meanwhile expectations that the worldâ€™s largest economy is on course to recovery continued to boost the U.S. dollar against major currencies.
The Euro dropped against the U.S. dollar to the lowest since March 17, 2009, as the pair dropped below the $1.30 levels for the first time in a month, the pair seems to be on its way for further drops, as the pair might drop to the $1.2940 level today, and could even extend the losses towards the $1.27 levels.
The Japanese Yen also extended its gains against major currencies as it rose against the U.S. dollar and the Euro, the U.S. dollar dropped against the Yen to the 98 levels and might be on its way towards the 97.40 levels, given that it can settle below the 98.80 level.
Meanwhile the Euro dropped against the Japanese Yen, as the pair seems to have settled below the 130 level and is heading lower towards the 126 levels, however against the British Pound the Euro was able to rise slightly this morning, though the pair is still trading within the 0.88 levels and is expected to drop further, however itâ€™s rising in what seems to be a correctional wave, since the pair has been trading within an oversold area for a while.
Japan released its final estimate for the leading index CI for the month of February, the index declined slightly to 75.0 from 75.2, while the coincidence index declined in February to 86.0 from the prior estimate of 86.8.
The U.K. Rightmove house price index was released today for the month of April, house prices rose in April by 1.8 percent marking the third consecutive rise and following the prior reported rise of 0.9%, while house prices dropped by 7.3 percent compared with a year earlier and following the prior reported drop of 9.0%.
The U.K. housing market was among several sectors that continued to weigh down on economic growth in Europeâ€™s second largest economy, as tightened credit conditions, falling home values, and rising unemployment indeed led the economy into the depth of recession.
Meanwhile the services and manufacturing sectors continued to deteriorate severely amid the ongoing financial crisis, which forced the Bank of England to reduce its benchmark interest rates to the lowest level in its history at 0.50 percent, while addressing at the same time, the challenges facing the U.K. economy and accordingly initiating quantitative easing methods, to help reduce long term interest rates and facilitate liquidity.
Meanwhile the U.S. economy remains under huge pressures amid the worst financial crisis since early 1930s, as the economy is still undergoing recession amid tightened credit conditions, falling home values, and rising unemployment, as all are weighing down on consumer spending, which counts for nearly 2/3 of economic activity in the worldâ€™s largest economy.
The U.S. leading indicators for the month of March are expected to come inline with the recent data released from the United States, and signaled that the pace of slowdown is indeed easing, as conditions are slightly improving compared with the previous period, which saw the economy contracting by 6.3 percent over the course of the last three months of 2008. The leading indicators are expected to decline in 0.2 percent following the prior reported drop of 0.4% back in February.