The yen drop at one-week lows against the dollar early on Thursday

Good Morning,

- Yen trade lower as global stocks rally, Euro holds steady.

- The euro edged up against the greenback in Asian trade even after data on Wednesday confirmed that euro zone inflation had slowed to levels not seen since November 2009. That should keep the pressure on the ECB to act if prices do not rebound.

- German producer prices for industrial products fell by 0.9% compared with the corresponding month of the preceding year. While prices of consumer non-durable goods increased by 1.3% compared with March 2013.

- Bank of America holds the view that Cable is in the process of carving out a medium, potentially long term top and bearish turn lower but in the very near-term BofA doesn't rule out further Cable gains. "That view is likely to take longer than previously thought. This morning’s test of the 1.6824, Feb highs and repeated failure to break 5m channel support (now 1.6578) says that further near term upside is likely," BofA notes. "Indeed the break of 1.6824 should see GBP/USD run to the confluence of long term, pivotal resistance between 1.7167/1.7045 before renewed signs of topping emerge," BofA projects. "For now we remain patient. Back below the 5m channel support at 1.6578 says the turn is at hand," BofA advises.

- Yesterday U.S. focus was on Janet Yellen's second public speech as Federal Reserve Chair, in which she stressed the need for accommodative policy citing persistently low inflation and economic slack. Her dovish remarks somewhat offset promising data that showed the U.S. economy was regaining momentum. Also U.S. industrial production rose at a faster-than-expected clip in March, while the Fed's Beige Book report showed economic activity picked up in recent weeks.

- The yen drop at one-week lows against the dollar early on Thursday, having eased broadly overnight as a rally in global stocks dented demand for the safe-haven currency. The dollar bought 102.35 yen after rising 0.3 percent on Wednesday.

- BOJ Kuroda: Japan’s economy continues to recover moderately. Japan’s economy likely to continue recovering as a trend. Japan making steady progress in meeting BOJ’s price target. BOJ will maintain its QE program until needed to sustainably meet its price target. BOJ will adjust policy when needed, looking at upside, downside risks to economy.

- Japan’s consumer confidence fell in March to the lowest level since August 2011, a reading that may tumble further this month after a sales-tax increase on April 1 sapped the public’s spending power. The reading of 37.5, down from 38.5 in February, was released by the Cabinet Office in Tokyo today.

- China attracted $12.24 billion of foreign direct investment in March, down 1.47% from a year earlier. The figure was up from February's $8.5 billion, which was 4.1% higher from a year earlier. The country drew $19.3 billion in foreign direct investment over the first two months of 2014, up 10.4% from a year earlier. FDI in the January-March period rose 5.5% on year to $31.56 billion.

- Australian business confidence eased in the first quarter but remained at elevated levels, while conditions recovered slightly and touched the highest level in six quarters. But with the Australian dollar stabilizing at elevated levels, NAB expects the competitiveness of some industries will continue to come under pressure.

- Gold held at $1,300 level an ounce, heading for a weekly decline, as investors weighed signs of an improving U.S. economy against tension in Ukraine. Prices reversed losses yesterday after Ukraine accused Russia of fueling terrorism in its eastern provinces. The metal is 1.1 percent lower this week, set to snap a two-week advance.

- Watch today: US jobless claims, US retail sales.

Have a nice Day !