The U.S. Dollar (CURRENCY:USD) gained momentum against the major global currencies, however, its rally is expected to remain under limited ahead of the release of the U.S. employment report and the Bank of England’s policy decision.

Asian stock fell but Europe retreating from losses

During early European hours, USD/JPY (USDJPY) advanced 0.62% to 109.07. The outlook over the Yen remains weaker as traders suspect Japanese officials to intervene with the currency’s upside moves. On the other hand, EUR/USD (EURUSD) dipped 0.14% to 1.1409 while GBP/USD (GBPUSD) declined 0.05% to 1.4440. According to market expectations, the Bank of England is likely to leave its interest rates unchanged at 0.5% while maintaining monthly asset purchases at £375 billion.

In global equities, Asian markets were broadly lower, hit by steep losses posted by the Wall Street stocks a day earlier. HANG SENG INDEX (INDEXHANGSENG:HSI) lost 0.70% to 19,915.46. However, India’s S&P BSE SENSEX (INDEXBOM:SENSEX) bucked the trend by trading 0.71% higher at 25,779.90.

European markets followed the Asian trend during opening trade but later managed to trim the losses. Among major indices, CAC 40 (INDEXEURO:PX1) rose by 0.41% to 4,334.96. The revival in the European equities can be accredited to the strengthening of the iPath S&P GSCI Crude Oil Total Return (NYSEARCA:OIL) prices.

IEA report boosts oil outlook

The commodity is back into the limelight as the International Energy Agency expressed the likelihood of a dramatic fall in the global supply this year. The IEA report followed an unexpected drop in the U.S. crude stocks that was published yesterday, which gave a sudden rush to the commodity. The IEA noted that the stockpiles have started to decline in the Organisation for Economic Cooperation and Development countries. The report pushed the Brent Crude prices up by 0.65% to $47.91 while West Texas Intermediate Crude Oil rose 0.78% to $46.59.