Daily Report: EUR/USD, GBP/USD, AUD/USD And NZD/USD

The U.S. Dollar declined versus the majority of its major peers as investors speculated on whether central banks from around the globe will continue to engage in monetary easing. The greenback remained weak as risk appetite improved in the market following the release of better than forecast U.S. Unemployment figures. According to the data, Initial Jobless Claims dipped by 42,000 to 346,000 during the week that concluded on April 6th. The improvement helped set market investors at ease, especially as the Labor Department explained that the drop may have occurred as a result of seasonal changes. Other reports indicated that Import Prices went down 0.5 percent last month. Meanwhile, Canada’s Dollar traded at a seven-week high against its American counterpart as the appeal for risk assets overshadowed lackluster metrics which dampened the outlook for the economy for the commodity-exporting nation. The Loonie rallied after reports revealed gains in Home Values and despite a fall in crude oil futures.

The 17-nation currency climbed against the U.S. Dollar as speculators entered into Euro positions in light of the aggressive monetary policies implemented by the Bank of Japan. The new measures impacted the Japanese economy and prompted individuals to seek higher-yielding assets. The British Pound remained strong against the greenback as optimism improved subsequent to the release of positive U.S. Jobless metrics. In the U.K., an Index that gauges Inflation Expectations showed a hike not seen in 4 ½-year. This occurred after the country held a successful securities auction on Thursday.

The Yen weakened further against the U.S. currency as the Labor Department issued better than expected data which showed improvement in the U.S. employment sector. The Japanese monetary unit halted its drop against the greenback after reports revealed that investors disposed of their foreign bonds.

Lastly in the South Pacific, the Australian Dollar retreated from the highs it reached on Wednesday, as lackluster domestic Jobs reports weighed on the currency. According to the Bureau of Statistics, employers shed 36,100 jobs which was far more than predicted. The release also revealed that Unemployment ticked up to 5.6 percent while economists predicted it would stay at 5.4 percent. The New Zealand Dollar traded at a 20-month high against its U.S. peer as Manufacturing Activity in the small South Pacific island grew in March, and as a gauge of the country’s Home Prices showed an increase for last month.

EUR/USD- Speculators May Opt For Euro
The Euro climbed against the U.S. Dollar on speculation investors will seek Euro assets while the Bank of Japan engages in unprecedented easing measures. On the data front, Germany’s Consumer Price Index showed an increase of 0.5 percent in March. The shared currency also benefitted from improvements in risk appetite brought on by news from China revealing that Bank lending advanced in the month of March. The release came a day after China showed that its Trade Surplus remains strong.
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GBP/USD- Forecasts On Inflation Climb
The British Pound rallied the most in seven weeks versus the U.S. Dollar as an index which gauges Inflation Forecasts rose to the highest in over 4 ½ years following a successful auction wherein the country sold 1.6 billion Pounds ($2.5 billion) of gilts with a maturity date for 2024. The Sterling remained strong as risk appetite increased in the market after the Bank of Japan unveiled never-before implemented stimulus measures, and as China reported a big improvement in bank lending.
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AUD/USD- Unemployment Ticked Up
Australia’s Dollar fell against the greenback after the country posted reports showing that Unemployment rose from 5.4 to 5.6 percent in March, the highest in 4 years. The number of employed individuals declined by 36,100, bolstering speculations the Reserve Bank will more than likely reduce the costs of borrowing money to fuel economic growth.
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NZD/USD- Kiwi Traded At 20-Month Highs
New Zealand’s Dollar advanced to a 20-month high against the greenback as Manufacturing Activity improved in the small South Pacific nation. According to the Performance Index, Manufacturing posted at 53.4 last month, denoting that it’s still in expansion territory. Other reports revealed that the domestic conditions continue to be robust, especially as the gauge of the country’s Home Prices climbed 2.4 percent in March to record highs, according to the Real Estate Institute. The Kiwi was also supported by comments from the Finance Minister, Bill English wherein he suggested that Home Value Inflation may lead to a hike in the interest rates.
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Today’s Outlook
Today’s economic calendar shows that the Euro region will report on Industrial Production. The U.S. will release data on Core PPI, Core Retail Sales, PPI, Retail Sales, and the Michigan Consumer Sentiment. Lastly, the Federal Reserve Chairman, Ben Bernanke, is scheduled to speak.