Market news
22.03.2011, 09:27

Asian session:

The yen was within 0.4 percent of a two-week low against the euro as Asian stocks rose and progress by Japan in restoring a crippled nuclear plant’s cooling systems reduced demand for the currency as a refuge.
The euro rose to the strongest in four months versus the dollar on prospects European Central Bank officials will reiterate this week their willingness to raise interest rates next month. 
The yen erased early losses against the greenback on concern Japanese investors are repatriating overseas assets. 
The Dollar Index, which tracks the dollar against the currencies of six major U.S. trading partners, reached 75.304, the lowest since December 2009.

EUR/USD: the pair become stronger in around $1.4240.
GBP/USD: the pair become stronger in around $1.6340.
USD/JPY: the pair bargained within the limits of Y80.80-Y81.30.


UK Inflation data is also out at 0930GMT. The Bank of England, in its February Inflation Report, forecast Q1 CPI would average 4.08%. If CPI does rise to 4.2% in Feb, as analysts expect (0.6% m/m), it is going to have to drop to 4.1% in March to get back in line with the BOE's forecast.
UK data continues at 1100GMT with the CBI Industrial Trends Survey. Manufacturing has been a bright spot in the UK's economic recovery. 

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