A Quick Look at the Global Markets

By FXEmpire.com

The US dollar and the Japanese yen fell against their major rivals in late Asian moves during Thursday’s Asian session, as traders bought risk associated assets in the wake of some positive news in the market.

Market wait for two important reports today:

USD- U.S. Trade Balance of the difference between imports and exports, Thurs., Apr. 12, 8:30 am, ET.

The trade deficit’s expansion in recent months has been one of the weak spots in the series of positive U.S. economic data, but there may be a sign of improvement with forecasts pointing to a reduction of the trade deficit to 51.9 billion in March from 52.6 billion in February.

CNY- China GDP- Gross Domestic Product, the main measure of economic activity and growth, Thurs., Apr. 12, 10:00 pm, ET.

As China prepares for a “soft landing”, the economy is forecast to continue the descent by registering slower economic growth of 8.4% q/a in the first quarter of 2012, compared with 8.9% q/a in Q4 2011. A weaker than expected report would have a negative impact on investor sentiment and risk appetite.

The latest bull wave was driven by a warm kick start of earning season with Alcoa posting a surprise profit in the first quarter. Easing bond yields in Spain and Italy and an upbeat jobs data from Australia also supported the risk-sentiment.

The Federal Reserve’s latest Beige Book revealed that the U.S. economic recovery preceded at a modest pace in recent months, as manufacturers expressed optimism despite concerns about higher energy prices.

Consumer spending was “encouraging” across a number of the Fed’s twelve districts, according to the Beige Book, which gathers anecdotal information on current economic conditions.

European Central Bank Executive Board member Benoit Coeure helped alleviate some recent investor concerns about Europe’s debt problems by saying that the ECB will revive its bond-purchase program to lower Spain’s borrowing costs.

Although the risk-sentiment regained, the undertone remains cautious due to concerns over a cooling Chinese economy and slowing jobs growth in the United States.

The World Bank today lowered China’s growth estimate for 2012 to 8.2 percent from 8.4 percent and said that the prospects for a gradual adjustment of growth remain high.

Meanwhile, the Bank of Japan Governor Masaaki Shirakawa said that the central bank will continue powerful monetary easing and warned that uncertainty over global economy still remained high.

In a speech at a quarterly meeting of the central bank’s regional branch managers, Shirakawa said the BoJ will pursue powerful easing to help the economy overcome deflation and return to a sustainable growth path.

Unemployment in Australia remained steady in March, against expectations of a rise, according to data from the Australian Bureau of Statistics.

According to the data, the total number of jobs in Australia rose by 44,000, or 0.4 per cent, to 11,491,200 in the month. The result sees the unemployment rate remain steady at 5.2 per cent.

The dollar reached as far as yesterday’s 8-day low of 1.5940 against the sterling around 2:45 am ET and the pair has been hovering in that level since then.

The USD reached 1.3151 against the euro, a few pips short of yesterday’s new multi-day lows. The pair is staying around the 1.3140/50 level with 1.3290/1.33 seen as the next likely target area.

Originally posted here