USD Higher, IMF Says Toxic Assets May Reach $4 Trillion

Daily Forex Fundamentals | Written by Easy Forex | Apr 07 09 14:11 GMT |

FX Highlights BOJ leaves monetary policy unchanged, economic assessment unchanged, pace of export output declines to moderate, BOJ will increase lending of municipal bonds The Japanese government will announce new stimulus package Wednesday, JPY higher supported by a spike in risk aversion and weaker equities UK Times reports that the IMF will issue warning that toxic assets could rise to $4 Trillion, the Times report sparked selling of equities and safe haven flows to the USD and JPY, risk appetite falls RBA cuts overnight rates 25 basis points to 3%, says global economy continues to contract, credit demand weak, labor market weak, further rate adjustments will be moderate, AUD pares early decline as rate cut smaller than expected Australia's March PCI rises 0.9 points to 30.4 EU Q4 GDP falls 1.6%, EUR pressured by selling of EUR/JPY cross, weak GDP and declining equity markets UK February industrial production falls 1%, February manufacturing production falls 0.9%, GBP lower pressured by week UK data, risk aversion and poor reception for UK ten year gilt auction The Fed announced agreement on currency swaps with the BOJ, BOE, SNB and ECB to try and help stabilize global financial markets Russia seeks IMF report on possible global reserve currency US equity market set to open lower, European equities close 1% lower, Nikkei closed 25 points lower Upcoming Events US –Tuesday, February consumer credit would be released expected at -1bln compared to 1.7bln last month By Michael J. Malpede Easy Forex Michael J. Malpede is Chief Market Analyst with Easy-Forex® and has previously been featured on Bloomberg TV, Bloomberg radio, Reuters, MarketWatch, Wall Street Journal, Chicago Tribune, Chicago Sun Times, Toronto Star and Nikkei press. In analyzing the markets, he draws from 29 years of Foreign Exchange Research as a Foreign Exchange Analyst. Please note that Forex trading (OTC Trading) involves substantial risk of loss, and may not be suitable for everyone. This report is provided by Easy- Forex® for informative purposes only. In no way it is a recommendation by Easy-Forex® for you to engage in any trade. It is your sole responsibility and you will have no claims with regards to this report against Easy-Forex®. If you do not agree to this, you are strongly advised not to use this report. Hence, Easy-Forex® shall not be held responsible for any outcome of trading decisions, in regards with this report or similar reports.