By FXEmpire.com
Asian markets are trading lower today on the back of ongoing tensions over Euro Zone debt crisis with Greece being the matter of concerns. Rising worries over exit of Greece from the Euro Zone coupled with worsening political disorder in Europe led to spread the wave of risk aversion in the global markets. JPMorgan Chase & Co. faces a $2 billion trading loss from a failed hedging strategy overshadowed the improved US employment data.
US Trade Balance stood at a deficit of $ 51.8 billion in March as against previous deficit of $ 45.4 billion in February. Unemployment Claims declined by 1,000 to 367,000 for the week ending on 4th May from 368,000 in prior week. Import Prices declined by 0.5 percent in April compared to rise of 1.5 percent in March. Federal Budget Balance was at a surplus of $ 59.1 billion April with respect to deficit of $ 198.2 billion a month earlier.
China’s Consumer Price Index (CPI) declined marginally to 3.4 percent in last month from previous rise of 3.6 percent in March. Producer price Index (PPI) declined by 0.7 percent in April compared to earlier decline of 0.3 percent a month ago. The US Dollar (DX) strengthened slightly around 0.1 percent in yesterday’s trading session as concerns with respect to Europe’s debt crisis and mixed sentiments in the global markets increased demand for low yielding dollar. The index touched an intra-day high of 80.34 and closed its trading session at the level of 80.26 on Thursday.
French Industrial Production declined by 0.9 percent in March with respect to rise of 0.3 percent a month ago. French Gov Budget Balance was at a deficit of 29.4 billion Euros in March from previous deficit of
As per the Organization of Petroleum Exporting Countries (OPEC) report yesterday, Iraq will double its output by 2015. Additionally, the country is also planning to overtake Iran as the second largest crude oil producer of OPEC by year end. Iraq produced 3.03 million barrels a day in April which is 7.7 percent more than that produced in March, while Iran production declined to 3.2 million barrels a day as sanctions affected the crude oil production.
OPEC is responsible for 40 percent of the global crude oil supplies and it increased its production by 320,000 barrels a day to 31.62 million barrels in April. Saudi Arabia the world’s major crude oil exporter increased it production supply by 56,500 barrels a day to 9.9 million barrels in last month. The cartel will export 23.96 million barrels a day till May end compared to 24.39 million barrels in April to Asian continent which would be down 1.8 percent as refiners in Asia will conduct seasonal maintenance.
China’s gold demand growth, the second-largest consumer, may decline this year as falling prices put off investors and slower
economic growth affected sales in the yellow metal. In 2011, China consumed 769.8 metric tonnes of gold in jewelry and investments by individual as compared to 639.2 tonnes in 2010 and 392.7 tonnes in 2008.
Click here for further USD/CNY Forecast.
Originally posted here
