NEWS / Foreign Exchange

European Forex Recap

• Dow Jones Industrial average closed Wednesday higher by 30.80 points at 12,803-84

• In the Asian time zone Asian equities down over 2% as rumors abound that China is about to either widen the band or hike rates and the Yen crosses have been hammered significantly lower,. Also talk that a Japanese name which sold over 2 yards of everything against the Yen and also reports that China was delaying the release of its GDP until after most of the Asian stock markets are closed.
• FX rates as of 11.00pm EST GBP/USD 2.0034/39  EUR/USD 1.3587/90  USD/JPY 117.90/93  USD/CHF 1.2035/39  USD/CAD 1.1298/03  AUD/USD 0.8326/30  NZD/USD 0.7394/98

• German PPI for March +0.3% m/m +2.5% y/y after +0.3% m/m +2.8% y/y in February (2.00am EST)

• Nikkei 225 closed Thursday lower by 316.07 at 17,351-26 (2.00am EST)

• Yen crosses continue to come under pressure in early London trading as traders continue to trim or unwind carry trades, Dollar-yen currently trading 117.62/65 (2.45amEST)

• Chinese GDP Q1 +11.1% y/y from Q4 2006 +10.4% y/y. Dollar-yen spiked from 117.75 to 118.15 but then recovered to trade around 118.00 (3.00am EST)

• Dollar-yen lower as Real Money names sell taking it from 117.92 to 117.75 (4.10am EST)

• Japan??™s Watanabe on the wires saying that the yen is not too weak and that any yen movements are determined by the market. He also adds that the Japanese economy is on the right track (4.30am EST)

• FX rates as at 6.55am EST GBP/USD 1.9999/04  EUR/USD 1.3585/88  USD/JPY 117.92/95  USD/CHF 1.2031/35  USD/CAD 1.1271/76  AUD/USD 0.8323/27  NZD/USD 0.7407/11

 Economic data due out later today

7.00am   Canadian Consumer Price Index for March

8.30am   US weekly jobless claims for the week ending April 14th

10.00am US Leading Indicators for March

12.00pm US Philadelphia Fed Survey for April

Session Ranges

GBP / USD:                 1-9985             2-0060

EUR / USD:                 1-3560             1-3611

USD / JPY:                  117-60             118-16

USD / CHF:                 1-2002             1-2045

USD / CAD                 1.1255             1.1307

AUD / USD                 0-8281             0-8348

NZD / USD                 0-7364             0-7418