Forex: Thursday's review
The yen dropped against most of its major counterparts as Japan slid into its third recession in a decade and Prime Minister Naoto Kan said he expects the central bank to maintain a flexible monetary policy.
Gross domestic product in Japan contracted an annualized 3.7 percent in the three months through March, following a revised 3 percent drop in the previous quarter, the Cabinet Office said today in Tokyo.
The dollar pared losses against currencies of commodity exporters as data showed Philadelphia-area manufacturing grew at the slowest pace in seven months.
The dollar reversed a loss against New Zealand’s currency after the Federal Reserve Bank of Philadelphia’s general economic index unexpectedly fell to 3.9, the weakest reading since October, from 18.5 a month earlier. Readings greater than zero signal expansion. In another report, the National Associated of Realtors said sales of existing U.S. homes slid 0.8 percent in April to a 5.05 million annual pace.
The franc fell against the euro as Swiss Economy Minister Johann Schneider-Ammann said authorities will consider “appropriate” measures if the currency continues to strengthen.
EUR/USD: on results of yesterday's session the pair become stronger in around $1.4310.
GBP/USD: on results of yesterday's session the pair become stronger in around $1.6230.
USD/JPY: positions of pair on results of yesterday's session practically haven't changed.European data starts at 0700GMT, when German PPI. This is later followed at 0800GMT by March current account data. European data rounds off at 1000GMT with
France industrial orders, which are released at the same time as the Bundesbank publishes the Monthly Bulletin for May.