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Wednesday, 6 April 2011

Action Insight Daily Report 4-6-11

Daily Report: Yen and Dollar Extend Down Trend

Yen and dollar resume weakness today and are both broadly lower against European majors. Yen extended the post intervention decline as partly driven by revival of carry trades. In addition, BoJ is said to be considering a credit program to spur lending for reviving the economy after March's natural disaster. The bank may make an announcement as early as tomorrow after a two day meeting. Dollar, on the other hand is pressured as Fed minutes showed diverging opinion among members on whether to unwind the stimulus measures this year. Gold jumped to record high of 1458.6 overnight while crude oil is firm above 108, both keeping the pressure on the greenback.

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