Investing.com - Here are the top five things you need to know in financial markets on Thursday, April 7:
1. Dollar crumbles to 17-month lows against the yen
The dollar sank to its lowest level in 17 months against the yen on Thursday, as investors continued to bet that Tokyo will not intervene in the market.
USD/JPY hit lows of 108.03, the weakest level since October 29, 2014 and was last at 108.24 by 9:53GMT, or 5:53AM ET, off 1.42% for the day. The pair has fallen almost 10% so far this year.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell to 94.03 in early trade, a level not seen since October 15. It last stood at 94.36, down 0.14% for the day.
2. Fed chairs take the stage
Federal Reserve Chair Janet Yellen is scheduled to participate in a panel discussion at the International House, in New York, alongside former Fed chairmen Ben Bernanke, Alan Greenspan and Paul Volcker for a program entitled "When the Fed speaks, the world listens" at 21:30GMT, or 17:30PM ET.
Traders will also be paying attention to a speech by Kanas City Fed President Esther George at 8:15PM ET to further judge the balance of opinion among policymakers on the prospect of further rate hikes.
Minutes from the Fed's March policy meeting released Wednesday underscored caution about future interest rate hikes.
3. ECB publishes minutes, Draghi due to speak
Investors will be looking forward to the minutes from the European Central Bank’s March 10 policy meeting, due at 11:30GMT, or 7:30AM ET. ECB President Mario Draghi rolled out fresh stimulus measures at the conclusion of the March meeting, including increased asset buying and a deeper cut to deposit rates, but signaled there would be no further rate cuts.
Market players are also eying fresh comments from Draghi, who is due to speak about the economic and financial situation in Europe at the Portuguese President's Council, in Lisbon, later in the day.
4. China’s FX reserves rise for 1st time in 5 months
China's foreign exchange reserves in March increased for the first time since November, as the nation’s currency stabilized.
Foreign exchange reserves rose by $10.3 billion to $3.21 trillion last month, according to central bank data released on Thursday. Analysts were expecting a reading of $3.205 trillion.
Market experts said a stabilizing yuan exchange rate against the U.S. dollar has helped to cushion the outflow pressure.
5. Gold jumps more than 1%
Gold futures rallied on Thursday, as minutes from the latest Federal Reserve meeting showed many participants wanted to move cautiously on rate hikes.
Prices of the precious metal jumped $16.00, or 1.3%, to trade at $1,239.80 a troy ounce during morning hours in New York.
A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.