The Euro and the Sterling gave up earlier gains from last week as risk aversion play weighed on the high yielders. Last week the high yielding currencies among them the Euro and the Sterling were able to recover losses and rebound against the Dollar and the Yen as better than expected job figures lifted recovery hops. Nonfarm payrolls one of the strongest indicators of Job health in the US fell by -36k jobs against an expected fall of -50k jobs. The Euro was able to rebound from the 1.34 zone to above 1.37 against the Dollar and topped around 124¥ to the Yen.
After dipping below the 89 level against the Dollar rumors over BoJ stimulus pushed the Dollar Yen trade above the 90 mark once again. Ahead of the Japanese GDP figures investors are betting Japanese growth will be revised downwards from the preliminary figure of 4.6% YoY published in February as capital expenditures, one of the biggest lagers of the Japanese economy is expected to grow less than previously expected. Although the Japanese economy is still expected grow above 4% for 2009 after the revision, the Japanese government is far from being pleased with the performance of the economy.
The Chinese Prime Minister Wen Jiabao in his speech to the Chinese nation reiterated that Yuan exchange rate will be kept stable and stressed that more internal consumption is needed for a full recovery. The Prime minister pledged to keep monetary conditions easy to support growth while providing a rather carful outlook for the Chinese economy and the global economy as a whole. The Chinese Yuan has been kept by the Chinese authorities at around 6.82 per Dollar to support Chinese exports the main engine of Chinese growth. 


eToro Forex trading platform.



