Asian stocks were mostly higher on Friday. Japan’s Nikkei climbed almost 2%, while US stock indexes declined yesterday: DJIA fell by 0.14%, Nasdaq – by 0.13% and S&P500 – by 0.15%. Gold prices rocketed to a record, heading for the biggest weekly gain this year. April contracts rose to 1466.6 this morning. Oil prices also show strong positive dynamics with May delivery at 111.27 per barrel.
Fed Bank of Atlanta President Lockhart speaks today on the US economic outlook, and Vice Chairman Yellen will speak tomorrow. Lockhart said recently that he does not expect interest rates hikes by the Fed this year. He added he supports plans to complete the $600 billion bond purchase program in June as it was planned. US initial jobless claims declined by 10000 last week to 382000, Labor Department reported yesterday.
Euro
The European Central Bank raised interest rates for the first time since 2008 to tackle rising inflation pressure. Consumer prices in March in the Euro Zone rose to 2.6% in comparison with the ECB's inflation target of 2%. The euro climbed to the highest against the dollar since January 2010, to 1.4403, on expectations the European Central Bank may raise interest rates again after Trichet left the door open for further increases. “We did not decide that it was the first of a series of interest-rate increases,” he said, but added that “we will continue to do in the future to ensure price stability”.
British Pound
The pound strengthened against the dollar after the Bank of England, which also met on Thursday, left its benchmark rate at 0.5%, despite an inflation rate well above its own target. Today’s report is expected to show the UK producer prices increased 0.6% in March from February, when they gained 0.5%. Pair GBP/USD is approaching its highest level since January 2010 – 1.6400.
Canadian Dollar
Canadian dollar rose to its highest since November 2007 against the US dollar as crude oil, the nation’s largest export, traded at a 30-month high, adding demand for commodity-linked currencies. Canadian building permits rose in February more than predicted, and the jobs report is expected to show a March gain of 28000 jobs.
Australian Dollar
Australian dollar rose to a record against the dollar – 1.0535, with rising commodity prices. Aussie is also supported by investors’ expectations the central bank will hike interest rates over the next 12 months.
