JPY and USD have firmed in overnight Asian trade, EUR/USD down at 1.3100 from a North American close Thursday around 1.3175, while EUR/JPY is at 130.20 from around 130.85.
The euro’s cause hasn’t been helped by comments made by ECB President Trichet, which have convinced the market that the ECB will announce quantitative easing on May 7. Trichet, speaking in Tokyo, said that any ambiquity in the direction of policy will delay a recovery in the euro-zone, stating we “must do all.” He said a decision on non-standard measures would be made on May7. and that these measures need to be implemented with active bank participation.
Japanese asset managers have reportedly been selling the JPY crosses overnight.
Economic data due for release this morning;
07:15 GMT: Swiss retail sales February expected -0.2% y/y
08:00 GMT: Italian industrial orders February expected -2.6% m/m, -30.7% y/y
09:00 GMT: Euro-zone trade balance February expected -5.0 bln euros
09:00 GMT: Euro zone construction output February
09:00 GMT: Italian current account
