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although durable goods orders and new home sales coming in greater than had been expected, the USD declined in the board market as US equities posted strong gains on the last day of the week in response to higher than expected earnings. Traders� appetite for risk continue to rise, as stocks continue to increase, hurting the USD because demand for safer assets turndown. According to Forex updates the USD end the day weaker against all the major currencies, excluding the Pound, which lost ground after it was reported the UK economy contracted much more than predicted in the first quarter of 2009. US goods orders fell down by 0.8% while the core number fell down by 0.6%.
Is in this kind of moments of uncertainty and risk aversion that investors seek refuge in the forex market. Now that the Mexican swine flu has become a global concern and the stock market crashes due to fears of a new pandemic that delays the global recovery, buying yen is a great way to ensure easy and gains safe�
Asian stocks gain a 7th time in eight weeks, sending a regional index to the uppermost level in four months, as earning figures and production raised confidence the region�s economies have on track to recover.
Canon Inc., the world�s leading seller of digital cameras, increased 8.1% after cost cuts helped the company to boost its profit predict and Japan�s production levels augmented for the first time in six months. Li & Fung Ltd., the largest supplier of toys and clothes to Wal-Mart Stores Inc., added 10% ahead of a report that China�s manufacturing companies increased for a 5th month. Lion Nathan Ltd. soared 41% after getting a takeover offer.
The MSCI Asia Pacific Index added 1.6% this week to 90.91, a level not seen since January. Asian markets have rallied 29% since the MSCI benchmark goes down to an almost 6-year low on March 9.
Japan�s Nikkei 225 Stock Average surged 3.1% to 8, 977.37. Indonesia�s Jakarta Composite Index placed the region�s largest gain with an 8.3% advance after companies with PT Bank Rakyat Indonesia, the country�s second largest financial services provider, reported increasing profits.
Bernanke said it won’t reveal the stress tests results before the official announcement. Despite that, the market speculates that 10 of the 19 banks tested will need a capital injection.
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Stocks were off lows, though, having previous traded in excess of 1 percent lower. This assisted take a few of the shine off the U.S. currency, at the same time as apprehension over the flaw of the Japanese financial system also took the JPY which characteristically increases as well when stocks drop off an prior two-month tall versus the USD.