Release Explanation: Measurement of the value of cash, currency and cash assets held by the public. Monetary policy controls the supply and cost of money and credit. A central bank will increase the supply of money and decrease the cost of borrowing to stimulate an economy and vice versa to slow down an economy. While measuring the cost of borrowing is fairly easy (yield on Treasury Bonds), measuring the money supply can be a more daunting task.

Trade Desk Thoughts: The Euro zone M3 number hit the wires at 5.9% higher than what analysts had previously estimated. The number for the month of January was revised to 6.0%, slightly higher. The Euro area M3 was expanding at a very strong pace in the last few quarters, but it seems now the pace of growth is starting to slow. The number of Private Loans in the Euro-zone tumbled down to 4.2% from one year earlier, under the forecasted number, reflecting the tougher credit conditions.

Forex Technical Reaction: The euro traded side-ways during the Asian session, unable to develop a trend. Against the pound, the euro declined 30 pips.