Currencies

• EUR/USD The pair opened the Asian session at 1.4225 and after drifting off to 1.4205 in early Asia - it tracked higher for the rest of the morning session due to huge demand for EUR/JPY. The current price is 1.4299 due to "very heavy" stop loss orders.


• USD/JPY The yen declined against the dollar on expectations Japan will decide on a new fund policy to help rebuilt its damaged by the earthquake economy. In the two day policy meeting today, BoJ will decide on potentially further stimulus to help the hammered economy. The yen fell to 85.31 per dollar as of 6:32 a.m. in London from 84.87 in New York yesterday, after declining to 85.53.


• GBP/USD Sterling gained to the dollar as a report showed the U.K.'s service industries accelerated more than expected. Markit Economics Ltd. and the Chartered Institute of Purchasing and Supply said a gauge of U.K. services based on a survey of companies rose in March to 57.1, the highest level in 13 months. The median forecast of 69 economists in a Bloomberg News survey was for the gauge to stay at 52.6. The pound was 0.6 percent stronger at $1.6224 at 9:39 a.m. in London today.

Commodities

GOLD climbed to an all time record yesterday as the sovereign-debt crisis in Europe deepened after Moody's Investors Service cut Portugal's credit rating (to Baa1 from A3) and higher grain and oil prices worsened the inflation outlook. Immediate-delivery bullion increased $2.02 to an all-time high of $1,457.75 an ounce and traded at $1,454.80 an ounce at 1:06 p.m. in Singapore. Gold for June delivery in New York rose 0.2 percent to $1,455.90 an ounce after surging to a record $1,458.60 yesterday

OIL dropped in New York yesterday on speculation the recovery in fuel demand may falter in the U.S. and China, the world's biggest energy users. Futures declined from a 30-month high yesterday after an increase in the Institute for Supply Management's index of non- manufacturing businesses fell short of economist forecasts (decreased to 57.3 last month from 59.7 in February) and China's central bank raised interest rates. Energy Department report today may show U.S. crude stockpiles rose for a fifth week, according to a Bloomberg News survey. Crude for May delivery fell as much as 62 cents, or 0.6 percent, to $107.72 a barrel in electronic trading on the New York Mercantile Exchange. It was at $108.13 at 11:42 a.m. Singapore time.

Sources: Bloomberg, FT