Forex: Thursday’s review

Yesterday the yen gained  as a report showed economic confidence in the euro region fell in April, boosting demand for the safety of the Japanese currency.

The European Commission said in Brussels an index of executive and consumer sentiment in the 17-nation euro area slid to 92.8 from a revised 94.5 in March. The median estimate in survey was for a drop to 94.2 from a previously reported 94.4.

The yen reversed two days of declines even before a Bank of Japan meets, with economists saying policy makers will unveil new easing measures.

The greenback was under pressure on speculation that the Federal Reserve may increase stimulus measures to bolster the U.S. economy after more Americans than forecast filed applications for unemployment benefits last week.

Jobless claims fell by 1,000 to 388,000 in the week ended April 21, from a revised 389,000 a week earlier, which was the highest since early January, Labor Department figures showed. The median forecast of economists  was 375,000.

Fed Chairman Ben S. Bernanke said yesterday that the central bank will do more to fuel growth if necessary.

EUR/USD: yesterday the pair rose in first half of day, however in second half of day fell below $1.3200.

GBP/USD: yesterday the pair holds in a range $1.6160-$1.6205.

USD/JPY: yesterday the pair fell below level Y81.00.

European data for Friday starts at 0600GMT with German import prices for March, which are expected to rise 1.0% m/m, 3.4% y/y, while at 0610GMT, the Gfk measure of German consumer confidence is expected to remain at 5.9. From 0800GMT, Swiss National Bank Board members are due to speak at a SNB General Meeting of Shareholders, in Bern.  UK data is limited to the latest Land Registry House Price Index at 1000GMT. At 1050GMT, ECB Vice President Vitor Constancio gives the keynote address at the conference in Brussels. US data starts at 1230GMT with the first (advance) report of Q1 GDP and also the quarterly Employment Cost Index data. Then, at 1355GMT, the

final reading of the Reuters/University of Michigan Survey is due and is expected to be revised up to a reading of 75.7 for April. Late US data sees the release of C&I Loans data at 2015GMT.