Global Currency Markets Look At Economic Data

This week, the Cypriot bailout and bank levy have been the headline event as global Forex markets reacted to the surprise bailout agreement and the ongoing rebate and rejection of the EU bailout. Traders headed for safety, pushing the US dollar up and seeing the euro fall to recent lows. Gold advanced a bit on safe trading. By late in the day, traders lost interest in Cyprus and turned their focus on the US FOMC rate and policy decision. The Fed decision and statement were in line with expectations leaving stimulus at 85 billion dollars per month. The currency markets showed very little reaction. The Fed trims forecast for 2013, 2014 unemployment rate, continued bond buying Federal Reserve officials forecast the nation’s unemployment rate will hit the central bank’s threshold for raising interest rates sometime in 2015, while projecting faster improvement in the labor market this year.
This morning China’s PMI rebounds in sign of sustained recovery China’s flash manufacturing index was 51.7 in March, expanding at a faster pace as compare to final reading of 50.4 for Feb’13 as production and orders pick up, a HSBC survey showed Japan post longest run of trade deficit in three decades.Continue Reading....