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Yesterday the dollar rose against the euro and the yen after the Federal Reserve refrained from new actions to stimulate the economy. The Fed kept intact its program to exchange $400 billion in shorter-term holdings for longer-term debt, dubbed Operation Twist and scheduled to expire in June. Policy makers led by Bernanke are holding off on additional steps to boost the economy amid signs the more than two-year expansion is gaining strength. Still, the jobless rate isn’t declining fast enough to satisfy central bankers, who repeated their view that borrowing costs are likely to remain “exceptionally low” at least through late 2014.
The dollar fell earlier as U.S. durable-goods orders dropped by the most in three years. U.S. durable goods orders slid 4.2 percent in March, the biggest decrease since January 2009, after a revised 1.9 percent gain the prior month. Economists forecast a 1.7 percent decrease.
The pound fell from a seven-month high versus the dollar after a government report showed the U.K. slipped back into recession, backing the case for the Bank of England to extend its asset-purchase program.
EUR/USD: yesterday the pair raised, updated a monthly high.
GBP/USD: yesterday in first half of day the pair fell, however rose on positive territory later.
USD/JPY: yesterday the pair holds about level Y81.30.
The German flash HICP data will follow state releases but scheduled events start at 0730GMT when ECB President Mario Draghi gives the opening speech at a conference entitled "Financial integration and stability: towards a more resilient single EU financial market", which
is taking place in Frankfurt. ECB Vice President Vitor Constancio then presents a report on Financial Integration at the same event at 0745GMT. Italy releases the ISTAT business survey at 0900GMT at the same time as the EMU economic sentiment survey and business climate indicator. UK data includes the BBA Bank Lending Report at 0830GMT, which includes mortgage approvals data. UK data then continues at 1000GMT with the CBI Distributive Trades Survey where the reported sales balance is expected to improve to a reading of 7. US data starts at 1230GMT when initial jobless claims are expected to fall 11,000 to 375,000, holding virtually steady in the previous week. US data continues at 1400GMT with NAR Pending Home Sales. Later on, at 2000GMT, US Treasury Secretary Tim Geithner speaks to the Commonwealth Club on "U.S. and Global Economies Ahead of the 2012 U.S.-China Strategic nd Economic Dialogue," in San Francisco, while late data at the same time sees money supply data released.
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