The US dollar traded slightly weaker against most major currencies today as fourth quarter GDP declined to 5.6% from the previous 5.9%.  On the upside, University of Michigan Confidence data for March posted positive numbers - at 73.6 versus the previous 72.5 and 73.0 as expected.  The positive data will likely support the dollar in recovering some of its losses from earlier European trading session.  Ahead next week, Consumer Confidence and Mortgage Applications are scheduled to be released, expected with continuing improvement. 

The euro recovered from a 10-month low versus the dollar as the EU summit continues.  Although details have not yet been released, European officials' announcement suggests a proposal to aid Greece through International Monetary Fund and European loans.  During a conference yesterday, ECB President Jean Claude Trichet expressed his concern of the IMF being the solution to Greece's bailout plan, however commented that he is happy that the governments of the euro found a workable solution.  The euro recovered from yesterday's low of 1.3268, currently trading around the 1.3400 resistance level, but fails to break it. 

The British pound declined against the euro after a report posted an annual drop in UK business investment.  Furthermore, news of Greece's bailout plan consisting of the IMF and bilateral loans supported the euro to extend gains against the sterling.  UK GDP for the fourth quarter out next week is expected to be unchanged at 0.3% quarterly and -3.3% annually. 

The Japanese yen recovered from some of its recent losses against the US dollar after weaker than expected US GDP data for the fourth quarter was released.  For the past week, the yen fell close to 3% against the greenback due to continuing pressure for BoJ to take action in credit-easing and U.S. yields rising.  Japan's Retail Trade and Jobless Rate for February will be out early next week.

The Canadian dollar fell back to close to 1.03 levels against the US dollar.  Despite stronger equities and commodities market, the Canadian dollar remains under pressure, likely due to worries of a tighter monetary policy in China. 

The Australian and New Zealand dollars traded lower after unexpected negative economic data were released.  Australian CB Leading Index dropped 0.2% versus the previous gain of 0.6%.  New Zealand Trade Balance dropped to 321 million versus the previous 355 million.    


Indicative rates:


















10-Year Treasury Note Yield:  3.8601%

Dow Jones Industrial Average:  10,896.84 + 55.63