Regulatory reform speculations fuel risk appetite

By @ibtimes on

Market Brief USDJPY traded at 92.88 while EURJPY declined to 124.38 for a second day on prospects U.S. President Barack Obama will call for new financial regulations. Running out of options, Japanese officials are starting to take a look at credit health discussing options for reducing the national deficit to either zero or 3% of GDP by 2020 at the expense of growth even as the IMF boosted its outlook for 2010 to 1.9% from 1.7%. Japan's exports advanced 43.5% (exp. 45.4%) for a fourth month in March, evidence that sustained gains in overseas demand are fueling the recovery as prices slump at home and posted a trade surplus of $10.2 billion in March while imports rose 20.7%. The AUDJPY fell to 85.96 and NZDJPY fell 0.4% to 65.92 for a second day on concern Greece's struggle to fund its budget shortfall will damp demand for higher-yielding assets. The currencies also weakened on prospects US President Barack Obama will call for new financial regulations, undermining investors' appetite for risk. Declines in NZDUSD were limited as Finance Minister Bill English said the nation's economy is recovering slightly more strongly than a December forecast adding that the economy would expand 2.1% in 2010 (prev. -1.9%). The IMF yesterday predicted growth would be 2.9% this year and 3.2% in 2011 while Australia's GDP will expand 3% this year and 3.5% in 2011. AUDUSD traded at 0.9259 while NZDUSD traded at 0.7100.

G10 Advancers and Decliners vs USD

 
JPY
0.36
width=120

 
NZD
0.20
width=66.6666666666667

 
GBP
0.11
width=36.6666666666667

 
CAD
0.05
width=16.6666666666667

 
CHF
0.04
width=13.3333333333333

 
DKK
0.00
width=0

width=6.66666666666667
EUR
-0.02
 

width=10
AUD
-0.03
 

width=23.3333333333333
SEK
-0.07
 

width=40
NOK
-0.12
 

Global Indexes
Current Level
% Change

Nikkei 225 Index
10920.97
- 1.52

Hang Seng Index
21330.97
- 0.84

Shanghai Index
3008.17
- 0.83

FTSE futures
5680.00
- 1.02

DAX futures
6236.00
- 0.48

DJIA futures
11034.00
- 0.23

S&P  future
1196.90
- 0.29

World Markets
Current Level
% Change

Gold
1145.88
- 0.08

Silver
18.06
- 0.20

Crude wti
83.40
- 0.33

VIX
16.32
+ 3.75

USD Index
81.19
- 0.04

Todays Calender
Estimates
Previous
Country / GMT

German PMI Services
55.2
54.9
EUR/0730

German PMI Manufacturing
60.1
60.2
EUR/0730

EU PMI Services
54.4
54.1
EUR/0800

EU PMI Manufacturing
56.7
56.6
EUR/0800

Retail Sales Ex Fuel (MoM)
0.5%
1.6%
GBP/0830

Retail Sales Ex Fuel (YoY)
4%
5.4%
GBP/0830

Leading Indicators
0.7%
0.8%
CAD/1230

PPI (MoM)
0.5%
-0.6%
USD/1230

PPI Ex. Food & Energy (MoM)
0.1%
0.1%
USD/1230

Initial Jobless Claims
450K
484K
USD/1230

Continuing Claims
4600K
4639K
USD/1230

Existing Home Sales
5.28M
5.02M
USD/1400

EU Consumer Confidence
-17
-17
EUR/1400

BOC Monetary Policy Report
-
-
CAD/1430

Currency Tech EURUSD R 2: 1.3590 R 1: 1.3525 CURRENT: 1.3386 S 1: 1.3330 S 2: 1.3268

USDJPY R 2: 94.80 R 1: 93.77 CURRENT: 92.89 S 1: 92.50 S 2: 91.80

GBPUSD R 2: 1.5575 R 1: 1.5525 CURRENT: 1.5426 S 1: 1.5285 S 2: 1.5190

AUDUSD R 2: 0.9450 R 1: 0.9390 CURRENT: 0.9267 S 1: 0.9150 S 2: 0.9050

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