Wednesday morning in Asia, the British pound weakened slightly against the currencies of US, Japan, Europe and Switzerland.

Against the currency of Europe, the pound dropped to 0.9190 during early Asian deals on Wednesday. The near term support level for the pound is seen at 0.925. The euro-pound pair was worth 0.9176 at yesterday's close.

In early Asian trading on Wednesday, the pound slipped against its US and Swiss counterparts. At about 9:30 pm ET, the pound touched 1.4641 against the dollar and 1.6569 against the franc, down from Tuesday's closing values of 1.4682 and 1.6622, respectively. If the UK currency falls further, it may likely target 1.445 against the dollar and 1.622 against the franc.

The pound that closed yesterday's trading at 143.72 against the yen declined to 142.89 in early Asian deals on Wednesday. On the downside, 142 is seen as the next target level for the UK currency.

The yen gained today as a government report showed that Japan posted trade surplus in February for the first time in five months.

The Ministry of Finance said that Japan saw a merchandise trade balance of 82.4 billion yen in February, marking the first surplus in five months. The February figure came in better than expectations for a 13.7 billion yen deficit following the revised record 956.9 billion yen shortfall in January. The original figure came in at -952.6 billion yen.

Exports plummeted by a record 49.9 percent on year to 3.525 trillion yen, the data showed, falling for the fifth consecutive month. That was worse than forecasts that had predicted an annual decline of 47.6 percent after the 45.7 percent fall in January.

Imports fell 43.0 percent on year to 3.443 trillion yen, declining for the fourth straight month. Analysts had expected a fall of 38.4 percent on year after the revised 31.9 percent decline in the previous month.

In the European session today, the Italian consumer confidence index, German IFO business climate index and the UK CBI distributive trades survey report-all for the month of March are expected.

Turning to the US, the Commerce Department is set to release its durable goods orders report at 8:30 am ET. Economists look forward to a 2% decline in the durable goods orders for February.

At 10:00 am ET, the Commerce Department is due to release its new home sales report for February. The consensus estimate calls for a decline in new homes sales to 300,000.

The Energy Information Administration is scheduled to release its weekly petroleum inventory report at 10:30 am ET.

Cleveland Federal Reserve Bank Sandra Pianalto is due to deliver a speech on forces for economic recovery Regional Growth Partnership luncheon in Maumee, Ohio at 12:20 pm ET. Meanwhile, San Francisco Federal Reserve Bank Janet Yellen is scheduled to deliver a speech to the Forecasters Club of New York on the U.S. economic situation and policy responses in New York at 12:30 pm ET.

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