Forex: Thursday's review
08.04.2011, 07:58

Forex: Thursday's review

The euro remain near its highest level in more than a year after European Central Bank President Jean- Claude Trichet said today’s interest-rate increase wasn’t necessarily the “first of a series.” 
The ECB raised its key rate by 25 basis points to 1.25 percent. 
The euro eased a bit versus its major peers after Portugal’s Prime Minister, Jose Socrates, said yesterday the nation was seeking financial assistance from the European Union.
Portugal plans to make a formal written request to the European Commission for financial aid, government minister Pedro Silva Pereira said in Lisbon. A rescue package for Portugal may be worth as much as 75 billion euros ($107 billion), two European officials with knowledge of the situation said.
The yen strengthened against the dollar after reports of a 7.4 magnitude earthquake off Japan’s coast and tsunami warnings. 

EUR/USD: the pair bargained within the limits of $1.4240-$ 1.4350.
GBP/USD: the pair bargained within the limits of $1.6260-$ 1.6350.
USD/JPY: on results of yesterday's session the pair decreased in around Y85.00.
UK data dominates the calendar with producer prices, which are released at 0830GMT along with Construction Output data. Input prices are expected to rise markedly, by 2.1% on the month, but base effects would result in the year on year increase declining to 12.6% from February's 14.6%. Output prices in today's data are expected to rise 0.6% on the month to stand 5.1% above levels a year earlier, while core data is forecast at 0.3% m/m, 2.9% y/y.

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