Downhill for the Dollar!

The dollar continued its downhill trend on Friday as risk appetite remained supported. China trade data over the weekend showed a sharp rebound in March which is likely to support risk appetite today. Atlanta Fed President Lockhart stated that the ECB’s interest rate hike on Thursday has no effect on the Fed’s policy posture.

BOJ governor Shirakwa commented that Japan’s economy is under strong downward pressure mainly in production after the quake. There is risk that the BOJ may be forced to ease again if the expected economic rebound doesn’t happen. This would be JPY negative.

On Friday the IMF confirmed that Portugal has asked for assistance and that the fund is “prepared to move expeditiously”. A weekend press article also reported that several EU finance ministers are favoring a Greek debt restructuring, but on the other end Trichet has asked for all parties to stick to the original terms of the rescue plan.

BOE member Sentence has again called for an interest rate hike which has supported the sterling. An initial BOE hike in May is expected and priced into the market already.

There aren’t any important data out today, so we’ll just have to keep a watch for any possible comments that may be spoken tonight. I know I have been quite sporadic on my updates on the blog, I guess April has been a crazy month outside of my trading! I am going to try as hard as I can to update more regularly.

Data Today

No important data out today

Happy Trading!

FxTaurian