Chinese data released Thursday showed rapid lending and accelerating inflation, particularly in the property sector. The News was near the middle of a range expected in analysts’ forecasts.

The Bank of Canada – BOC - decided to leave its Benchmark interest rates today unchanged at 0.25% in line with expectations, since the Canadian economy is still recovering from the worst recession since WWII, with other major economies around the world.

Today the economic calendar has witnessed some remarkable Chinese indicators which insured the recovery of the Chinese economy and the effectiveness of its $585 billion stimulus package. The nation released nine key economic data for November.

Yesterday, we saw the data proving that the U.S. economy experienced the first increase in real gross domestic product in a year and it was the strongest growth in two years; and after believing that American recession is over. Today, the Euro zone economic releases showed that the sharpest global recession since WWII is still having an adverse impact on the economy.

The U.S. dollar has slumped to fresh lows in Asia-Pacific trade amid the backdrop of continued stock-market gains and associated risk appetite.
A spate of recent comments from global finance officials concerned about the weakening dollar has failed to lift the dollar as investors bet major central banks won’t back up their remarks by buying dollars.

The currencies market in today’s Asian session has witnessed a slight decline in euro and the royal pound amid an absence of fundamentals. The euro dollar pair fell slightly recording a low of 1.4763 and a high of 1.4793, trading around 1.4780. The pair rallied yesterday from the 1.4720 levels to the 1.4815 levels where it found a strong resistance to start falling back to the 1.4780 levels. The German Zew survey will be released today that may affect the pair’s trades.

Today’s trading activity was subdued as U.S. markets are closed for Columbus Day. Also, markets in Japan are closed for Health-Sports Day, while Canadian markets are shut for Thanksgiving Day. So there were no U.S. economic reports on Monday.

Most of the economic data released so far on the U.S. is better than the market forecasts, demonstrating an improvement throughout most of the economic sectors and showing clearly that a recovery is taking place gradually.