[B]The US dollar slide against all the major currencies as market participants raised bets of a 25bp rate cut by the Fed on April 30, and fell to a new record low of 1.5978 against the euro as inflationary pressures surged in the Euro-Zone. The British Pound also advanced against the US dollar as labor conditions remain resilient in the UK, with the Canadian and Australian dollar taking the biggest bit out of the weakened dollar as oil futures touched a new record of $115.07 a barrel. The low yielding Swiss franc and yen picked up minor gains against the US dollar as the pairs fell to 0.999 and 101.8, respectively.[/B]
[B]The stock markets advanced during the morning session as Intel improved their forecasts for the second quarter, with JPMC adding to the mix as their earnings report beating market expectations. As a result, the DJIA rose 256.80 points to 12,619.27 points, with 27 of the 30 components advancing. The broader S&P500 picked up 30.28 points to hold off at 1,364.71 points, with 212 stocks hitting a new 52 week high.[/B]
[B]US Treasuries continued to face downward pressures as inflationary concerns curbed demands for risk free bonds, and sent US Treasury prices lower. As a result, the benchmark 10-Year yield rose to 3.691 percent from 3.598 percent, while the 2-Year yield surged to 1.971 percent from 1.823 percent. [/B]
Looking ahead, the Initial Jobless Claims and Continuing Claim index will kick off the morning at 12:30 GMT, with the focus moving to Fed official Kohn’s speech at 13:45 GMT. Following the speech, the Leading Indicators and the Philadelphia Fed index will wrap up the economic releases for the day at 14:00 GMT.