Daily Market Report 08/04/2013

We start this week with news that the Japanese yen has dropped to its lowest levels since 2009 following expectations that the Bank of Japan’s measures to fight deflation will devalue the currency yet further.

The US Dollar remains under pressure following the employment situation in the states specifically that US employers had added the least amount of new jobs in nine months. Ben Bernanke is speaking this evening in Georgia where the growth prospects of the US will come under fire following the employment figures on Friday. These current levels may entice some profit taking limiting any further gains in the pound especially given the political tensions between North Korea and the US.

Once again, today’s economic calendar is very light in terms of UK and US data with the UK RICS house price balance released after the close of trading hours this evening. German industrial production figures are due at 11am this morning however, the Cypriot bailout saga will still be under the spotlight following fears that Europe’s debt crisis may spread into developing markets as the price of financing increases along with a decrease in global liquidity.

Portugal’s Prime Minister Pedro Coelho has also stated that additional spending cuts will be necessary in the Social security, health and education sectors. However, he went on to say that these budget cuts would enable Portugal to avoid a second eurozone bailout. His description of his country’s situation as a ‘National Emergency’ reminds everyone that Europe’s economic stability is far from under control.

Key Announcements:

9.30am – EUR – Sentix Investor Confidence (Apr): Expected to decrease to -12.6.

11.00am – EUR – Geman Industrial Production (Feb): Expected to expand to 0.3%.

15.30pm – CAD – Bank of Canada Business Outlook Survey.