Wednesday 5th March

The US dollar is little changed over the last 24 hours as it holds slight gains helped by a partial recovery in US stocks as the DJIA rallied well towards the close yesterday. The market is steady ahead of a slew of economic data due over the next few days that may finally convince even the doubters that the US is already in recession.

Meanwhile US Treasury secretary Paulson insists that nothing has changed in the governments policy towards the dollar but he has failed to reassure worried Euro Zone officials who are pressurizing Washington to do more to limit the dollar's slide against the Euro.So far though no talk of intervention and with further bad economic news expected from the US such a move could well back-fire.

High yielders the Kiwi in particular off their highs as risk-aversion surfaces once again. But it's going to be the data releases that will govern moves for the next few sessions.