The yen climbed versus all of its 16 most-traded peers amid speculation a decision tomorrow by the Bank of Japan will signal its monetary-easing efforts will fall short of its goals and fail to reignite inflation. Japanese Prime Minister Shinzo Abe said yesterday the BOJ may fail to achieve its target of boosting inflation to 2 percent. The Bank of Japan will say tomorrow after a two-day meeting it will boost monthly bond purchases by about 50 percent to 5.2 trillion yen ($56 billion), according to the average forecast in a survey of economists.

The BOJ’s new governor, Haruhiko Kuroda, has indicated that expanded purchases of government bonds will be the main tool for easing. He has said the bank will consider combining monthly purchases and an asset-purchase fund, as well as buying more debt with longer maturities. Kuroda, who has given himself two years to do “whatever it takes” to end deflation, is running his first policy meeting.

The dollar weakened against the euro as a gauge of U.S. service industries dropped more than forecast. The greenback extended losses against the euro and yen after the Institute for Supply Management’s index of U.S. non- manufacturing businesses, which covers almost 90 percent of the economy, fell to 54.4 in March from 56 in the prior month. The median forecast of 73 economists was 55.5. Readings above 50 signal expansion.

The European Central Bank’s Governing Council meets tomorrow to decide on interest rates. Of 56 economists surveyed by Bloomberg News, 54 expect the ECB to keep its key rate at a record-low 0.75 percent, while two predict a cut.

The pound gained from a two-week low on bets the Bank of England won’t extend monetary-stimulus tomorrow. The pound strengthened against the dollar amid speculation the Bank of England will refrain at its meeting tomorrow from extending stimulus measures that tend to devalue the currency. Central-bank policy makers will maintain their asset-purchase target at 375 billion pounds ($568 billion), according to economists surveyed.

European stocks declined the most in five weeks, paring yesterday’s biggest rally for the region’s benchmark index in almost a month, as U.S. manufacturing activity fell faster than estimated, and companies in the world’s largest economy added fewer workers than forecast.

Stocks extended losses after data showed the Institute for Supply Management’s index of U.S. non-manufacturing businesses, which covers almost 90 percent of the economy, fell to 54.4 in March from 56 in the prior month. That fell short of economists’ median forecast for 55.5. Readings above 50 indicate expansion.

A U.S. payrolls report from the ADP Research Institute showed companies added 158,000 workers in March, missing the median economist forecast for 200,000 additions. The data comes ahead of the Labor Department’s monthly non-farm payrolls report on Friday.

National benchmark indexes declined in 15 of the 18 western European markets. Germany’s DAX fell 0.9 percent, the U.K.’s FTSE 100 slid 1.1 percent, and France’s CAC 40 lost 1.3 percent.

Vodafone led a gauge of phone companies lower, falling 3.1 percent to 186.2 pence, after Verizon denied a Financial Times report that said it had discussed a plan with AT&T Inc. to make a joint offer for the U.K. telecommunications operator. While Verizon reiterated interest in buying Vodafone’s stake in the companies’ Verizon Wireless joint venture, it doesn’t currently plan to bid for the whole company, according to a filing yesterday.

Telecom Italia SpA lost 5.4 percent to 53.6 euro cents and France Telecom SA retreated 4.4 percent to 7.66 euros after UBS AG downgraded both phone companies to sell from neutral late yesterday. Analysts cited downside earnings risk for Telecom Italia, and cost cutting by competitors for France Telecom.

Rexel climbed 1.9 percent to 17.69 euros after Goldman Sachs raised its recommendation for the French electric equipment distributor to buy from neutral, citing an acceleration in the U.S. commercial market.

Crude extended declines after a government report showed that U.S. oil stockpiles climbed to the highest level in more than 22 years. West Texas Intermediate’s discount to Brent narrowed for a second day.

Futures in New York fell as much 1.8 percent as the Energy Information Administration said supplies rose 2.71 million barrels to 388.6 million last week, the highest level since 1990. The report was projected to show an advance of 2.05 million, according to a survey.

Crude production was unchanged near the highest level since 1992. Output has surged as the combination of horizontal drilling and hydraulic fracturing, or fracking, has unlocked supplies trapped in shale formations in states including North Dakota, Texas and Oklahoma.

Crude stockpiles at the U.S. storage hub in Cushing, Oklahoma, fell 287,000 barrels to 49.2 million last week, according to the EIA, the statistical arm of the Energy Department. Supplies at the hub rose to a record 51.9 million in the week ended Jan. 11.

Gasoline stockpiles decreased by 572,000 barrels to 220.7 million last week, according to the EIA. Supplies of distillate fuel, a category that includes heating oil and diesel, declined 2.27 million barrels to 113 million.

Exxon Mobil Corp. (XOM)’s Pegasus pipeline, linking the U.S. Midwest to Texas refineries, will remain shut until regulators are satisfied with repairs. Exxon’s 96,000-barrel-a-day Pegasus pipeline line was closed after a leak was discovered in Arkansas on March 29. The line runs from Patoka, Illinois, to Nederland, Texas, and serves refineries on the Gulf Coast.

WTI oil for May delivery fell to $95.10 a barrel on the New York Mercantile Exchange. The contract traded at $96.46 before the release of the report at 10:30 a.m. in Washington.

Brent crude for May settlement declined $1.93, or 1.7 percent, to $108.76 a barrel on the London-based ICE Futures Europe exchange. 

Gold fell to a minimum of four weeks as investors transfer funds to riskier assets on a wave of optimism about the U.S. economy.

Last month, negotiations regarding assistance to Cyprus attracted the gold market buyers, who saw in this metal safe-haven asset that can protect their money from the uncertainty surrounding the future of the eurozone. Gold prices have exceeded $ 1,600, but this growth was unsustainable, after last week Cypriot banks have resumed their work in a fairly quiet environment. During 2013, gold futures lost 6% in value.

The economic situation in the U.S. has stabilized and stock indices surged to new highs, attracting investors to the promise of higher returns.

On Monday, it became known that manufacturing activity in the United States and China in the past month rose less sharply than economists expected. The data released on Tuesday, showed the continued decline in manufacturing activity in the euro area in March. Volume in U.S. factory orders rose in February by 3 percent, slightly above expectations.

Released on Wednesday, U.S. data on the employment rate and activity in the non-manufacturing sector was weaker than the market expectations, but investors are still prone to selling gold.

Dealers say the physical market buying from jewelers in Indonesia, but buyers in other countries, are projected to wait for further price reductions. Premium for gold bars in Singapore is $ 1.20 an ounce to the spot price in London.

Investors are waiting for coming in Friday's employment report in the U.S., which could support the view of the market that the Fed will keep policy extremely loose. Gold rose to a 11-month high in October of last year, when the Fed announced the third phase of "quantitative easing."

The cost of the June gold futures on COMEX today dropped to 1563.1 dollars per ounce.

EUR/USD $1.2750, $1.2780, $1.2850, $1.2860, $1.2900, $1.2995

USD/JPY Y93.00, Y93.50, Y93.70, Y94.00, Y95.00, Y96.00

EUR/JPY Y120.70, Y121.00

GBP/USD $1.5000

Downgrades:

Data

00:00 Australia HIA New Home Sales, m/m February +4.2% -5.3%

00:30 Australia Trade Balance February -0.18 -1.00 -1.22

01:00 China Non-Manufacturing PMI March 54.5 55.6

01:45 China HSBC Services PMI March 52.1 54.3

08:30 United Kingdom PMI Construction March 46.8 47.7 47.2

08:30 United Kingdom BOE Credit Conditions Survey Quarter I

09:00 Eurozone Harmonized CPI, Y/Y (Preliminary) March +1.8% +1.6% +1.7%

The euro rose against the dollar, recovering from the minimum value, and setting all the new session high, as many market participants are expecting that the European Central Bank at its meeting tomorrow may signal a readiness to take place in the near future economic stimulus program. Meanwhile, on the dynamics of trade affected the data showed that the level of consumer price inflation in the euro area slowed in March, which was the third consecutive monthly decline, but less than economists forecast, driven by slower growth in energy prices. According to the report, the harmonized index of consumer prices rose last month by 1.7% year on year in March, compared with an increase of 1.8% in February and forecast at around 1.6%. It is learned that the greatest contribution to the overall increase in prices brought food, alcohol and tobacco prices, which rose by 2.7% per year, which corresponds to an increase, which was recorded in the previous month. At the same time, the report showed that energy prices have also increased at a slower rate - by 1.7%, compared with an increase of 3.9% in February.

The pound rose against the dollar after a report on the state of the UK loan market, which was introduced by the Bank of England showed that many lenders claim that the program loan financing (FLS) reduces the cost of borrowing for companies, households. Survey also indicates that small companies benefit from FLS less than medium and large companies. Meanwhile, lenders have reported a significant increase in demand for loans from small and large companies in the 2nd quarter, but did not see significant changes in the availability of credit to companies in the 2nd quarter.

Yen range against the dollar, due to the fact that today began a two-day meeting of the Bank of Japan in the new composition. Most economists expect that the outcome of the April meeting of the Bank of Japan will increase the asset purchase program and go to purchase medium-and long-term government bonds. Kuroda has repeatedly reaffirmed the intention to do everything possible to end deflation in Japan, which has lasted for a decade and a half, and put the economy on consumer price growth of 2% in two years. The new head of the Japanese Central Bank plans to achieve the target by increasing the volume of asset purchase program, as well as by changing the structure of the program.

The Australian dollar has increased significantly against most major currencies after the spacecraft data showed that Australia's trade balance for the last month has changed suddenly. In the report, the Australian Bureau of Statistics noted that the rate of the seasonally adjusted change in February to -0.18 from -1.22 billion billion Note that the figure for January was revised from -1.06 billion analysts had expected the trade deficit will rise to -1.00 billion

EUR / USD: during the European session, the pair rose to $ 1.2837

GBP / USD: during the European session, the pair rose to $ 1.5128

USD / JPY: during the European session, the pair is in the range Y93.30-Y93.70

At 12:15 GMT the U.S. will announce the change in the number of employees from ADP in March. At 14:00 GMT the U.S. will composite index ISM non-manufacturing areas in March. At 22:30 GMT Australia will present the index of activity in the service sector of the AiG in March.

EUR/USD

Offers $1.2920, $1.2900/10, $1.2880/90, $1.2845/50

Bids $1.2780/70, $1.2755/50, $1.2735/30, $1.2720, $1.2705/690

GBP/USD

Offers $1.5280, $1.5230/35, $1.5190/2.00, $1.5150, $1.5120

Bids $1.5075, $1.5070, $1.5042, $1.5027

AUD/USD

Offers $1.0550, $1.0520, $1.0485/90

Bids $1.0410/00, $1.0390/85, $1.0365/60, $1.0355/50

EUR/JPY

Offers Y121.50, Y121.20/30, Y121.00, Y120.50

Bids Y119.20, Y119.05/00, Y118.50

USD/JPY

Offers Y94.50, Y94.30, Y94.00, Y93.75/80

Bids Y93.10/00, Y92.60/50, Y92.45/40

EUR/GBP

Offers stg0.8555/65, stg0.8510, stg0.8500

Bids stg0.8465/60, stg0.8455/50, stg0.8410/00, stg0.8395/90, stg0.8365/60

European stocks were little changed, after yesterday’s biggest rally for the region’s benchmark index in four weeks, as investors await reports on U.S. employment and services industries. U.S. futures were also little changed, while Asian shares climbed.

The Stoxx Europe 600 Index (SXXP) retreated 0.1 percent to 297.15 at 9:39 a.m. in London after climbing 1.3 percent yesterday on better-than-estimated U.S. factory orders data.

Vodafone led a gauge of phone companies lower, falling 1.7 percent to 188.75 pence, after Verizon denied a Financial Times report that said it was discussing a plan with AT&T Inc. to make a joint offer for the U.K. telecommunications operator.

Telecom Italia SpA lost 2.9 percent to 55 euro cents, while France Telecom SA retreated 3.4 percent to 7.75 euros.

Rexel (RXL) climbed 2.1 percent to 17.73 euros after Goldman Sachs raised its recommendation for the French electric equipment distributor to buy from neutral, citing an acceleration in the U.S. commercial market.

L’Oreal SA (OR) climbed 1.5 percent to 129.20 euros after Exane BNP Paribas added the world’s largest cosmetics maker to its key ideas list and increased its price estimate to 167 euros. Analysts including Jeff Stent said Nestle SA will sell its 30 percent stage in L’Oreal for “materially more” than the market anticipates.

At the moment:

FTSE 100 6,469.08 -21.58 -0.33%

CAC 40 3,802.22 -3.15 -0.08%

DAX 7,945.44 +1.57 +0.02%

EUR/USD $1.2750, $1.2780, $1.2850, $1.2860, $1.2900, $1.2995

USD/JPY Y93.00, Y93.50, Y93.70, Y94.00, Y95.00, Y96.00

EUR/JPY Y120.70, Y121.00

GBP/USD $1.5000

AUD/USD $1.0450

00:00 Australia HIA New Home Sales, m/m February +4.2% -5.3%

00:30 Australia Trade Balance February -0.18 -1.00 -1.22

01:00 China Non-Manufacturing PMI March 54.5 55.6

01:45 China HSBC Services PMI March 52.1 54.3

The euro remained lower following a drop yesterday amid speculation the European Central Bank will use its meeting tomorrow to signal future economic stimulus. Data yesterday showed the euro-area jobless rate rose to a record 12 percent in the first two months of this year, adding to signs that the currency bloc’s recession extended into the first quarter. The ECB, which has held its key rate at 0.75 percent since July, forecasts the economy will shrink 0.5 percent this year.

The yen fell as the Bank of Japan starts a two-day gathering at which it’s expected to increase monthly bond purchases to combat deflation. The BOJ will probably decide at this week’s meeting to boost monthly bond purchases by about 50 percent to 5.2 trillion yen ($55.6 billion), according to the average forecast in a survey of economists by Bloomberg News.

Australia’s dollar rose against most of its major counterparts after the nation posted a smaller-than-estimated trade deficit. The South Pacific nation’s imports outpaced exports by A$178 million ($186 million) in February, the Bureau of Statistics said today. Economists had estimated a shortfall of A$1 billion in a Bloomberg survey.

EUR / USD: during the Asian session the pair fell to $1.2795.

GBP / USD: during the Asian session the pair fell to $1.5075.

USD / JPY: yesterday the pair rose to Y93.70.

Change % Change Last

GOLD 1,576.30 -24.60 -1.54%

OIL 97.19 0.12 0.12%

Change % Change Last

Nikkei 225 12,003.43 -131.59 -1.08%

Hang Seng 22,339.86 +40.23 +0.18%

S&P/ASX 200 4,985.5 +19.00 +0.38%

Shanghai Composite 2,222.62 -11.77 -0.53%

FTSE 100 6,490.66 +78.92 +1.23%

CAC 40 3,805.37 +73.95 +1.98%

DAX 7,943.87 +148.56 +1.91%

DJIA 14,662.00 89.16 0.61%

S&P 500 1,570.25 8.08 0.52%

NASDAQ 3,254.86 15.69 0.48%

(pare/closed(00:00 GMT +02:00)/change, %)

EUR/USD $1,2822 -0,16%

GBP/USD $1,5103 -0,81%

USD/CHF Chf0,9485 +0,19%

USD/JPY Y93,36 +0,18%

EUR/JPY Y119,71 +0,03%

GBP/JPY Y141,01 -0,62%

AUD/USD $1,0453 +0,28%

NZD/USD $0,8416 +0,45%

00:00 Australia HIA New Home Sales, m/m February +4.2% -5.3%

00:30 Australia Trade Balance February -0.18 -1.00 -1.22

01:00 China Non-Manufacturing PMI March 54.5 55.6

01:45 China HSBC Services PMI March 52.1

07:00 United Kingdom Halifax house price index March +0.5% +0.2%

07:00 United Kingdom Halifax house price index 3m Y/Y March +1.9% +1.1%

08:30 United Kingdom PMI Construction March 46.8 47.7

08:30 United Kingdom BOE Credit Conditions Survey Quarter I

09:00 Eurozone Harmonized CPI, Y/Y (Preliminary) March +1.8% +1.6%

12:15 U.S. ADP Employment Report March 198 203

14:00 U.S. ISM Non-Manufacturing March 56.0 55.9

14:30 U.S. Crude Oil Inventories March +3.3

21:00 U.S. FOMC Member James Bullard Speaks April