The euro commenced the week with no significant changes from Friday’s close. The single currency reacted positively to comments by European Central Bank Governing Council member Nowotny, concerning the central banks exit strategy being under construction in order to be in place when the time comes. A report by the International Monetary Fund (IMF) warned that Greece's financial aid program is exceptionally risky and the debt-ridden nation may need additional debt restructuring. IMF is particularly concerned about the capacity and willingness of Greek politicians to deliver on the strict austerity policies, especially considering that the upcoming elections winner may not be as committed to reforms. Germany's Finance Minister Schauble refused to comment on the possible successors to Eurogroup Chairman Juncker, he nevertheless insisted that the new head will be a Finance Minister.

The US dollar appeared strong as the markets open following the weekend break. On Friday a series of data coming out below expectations, weighed on the US currency. The University of Michigan consumer sentiment index dropped to 74.3 in early March from 75.3 in February. Industrial production remained unchanged in February and the year-to-year readings for core consumer prices came out at 2.2% in February from 2.3% in January. Today's speech by New York Federal Bank President Dudley and appearances by Federal Reserve Bank Chairman Bernanke on Tuesday, Thursday and Friday will be closely watched.

Oil opened higher at 106.86 dollars a barrel from 106.46. Gold opened lower at 1659.29 US dollars an ounce from 1659.75. Against the euro, gold dropped to 1259.63 from 1259.95 an ounce. Silver opened at 32.5225 dollars an ounce from 32.5050. Stay in tune throughout the day with !

Outlook.PivotPreference1Sentiment2
.EURUSD1.3130LONG @ 1.313043% of deals buy EUR
.USDJPY83.50SHORT @ 83.5034% of deals buy USD
.GBPUSD1.5780LONG @ 1.578032% of deals buy GBP
.AUDUSD1.0560LONG @ 1.056036% of deals buy AUD
.GOLD1665SHORT @ 166569% of deals buy GOLD
.OIL105.65LONG @ 105.6530% of deals buy OIL
data generated by Trading Central, 2 data obtained from easy-forex Inside Viewer
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CalendarCurrencyTime (GMT)EventForecast
.EUR09:00Current Account for January2.3 bil
.GBP12:30Wholesale Trade for January0.3 %
.USD14:00NAHB Housing Market Index for March30
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Movers Shakers
GBPJPY
The British pound (GBP) broke through previous resistances against the Japanese yen (JPY) recording a 9-month high at 132.45. The pair appreciated by 295 pips, a weekly return of 2.3%. Friday’s close was at 132.206 which appears to be the new resistance level. It will be interesting to see whether past week’s trend will continue.
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