Forex: Tusday's review
The yen rose against all of its major counterparts as risk in Japan of radiation leaks from crippled nuclear power stations boosted speculation that insurers will repatriate assets to pay for earthquake damages.
Stocks sank, with the Nikkei 225 index posting its biggest two-day drop since 1987. The MSCI World Index fell 2.9 percent while the Standard & Poor’s 500 Index lost 2 percent.
Currencies of commodity-exporting countries plunged as speculation increased the explosions at the nuclear power station will damp demand for raw materials.
The Swiss franc advanced to a record against the dollar on demand for a refuge as Japan’s Prime Minister Naoto Kan said his government is doing everything it can to contain the radioactive leaks following last week’s earthquake and tsunami. The euro pared losses against the U.S. currency even as European Central Bank President Jean-Claude Trichet called “insufficient” a package of economic-oversight rules adopted by European Union finance ministers.
EUR/USD: the pair has shown low in the field of $1.3860 then returned back to around of a mark $1.4000.
GBP/USD: on results of yesterday's session the pair decreased in around $1.6070.
USD/JPY: on results of yesterday's session the pair has decreased in area Y80.70.
EMU data at 1000GMT is expected to see labour cost at 0.7% for Q4 and the final Feb HICP data at 2.4%. At 1200GMT, the Norges Bank delivers its monetary policy decision, which is followed by a press conference at 1245GMT.
UK labour market data is due at 0930GMT. The Q4 headline Labour Force Survey data deteriorated with a 68,000 drop in employment and the first official data for the new year, while January's claimant count figure showed a small rise. The Bank of England, however, believes the picture is less bleak.
US data starts at 1100GMT with the weekly MBA Mortgage Application Index. Meanwhile, US data at 1230GMT includes Housing Starts, Building Permits, the Q4 Current Account and PPI. The pace of housing starts is expected to slow to 560,000 annual rate in February after improving to a 596,000 annual rate in January. Builders continue to hold the line on
new home supply. NAHB reported no change in the builders index in February. Producer prices are expected to increase by 0.7% in February after a 0.8% increase in January. Core prices are expected to increase by 0.2% after the surprise 0.5% jump in January. Later US data sees the weekly EIA Crude Oil Stocks data at 1430GMT.