The volatility extended for another day today with heavy data pouring into the market. Investors returned to focus on the negatives and worried over prospects for further monetary tightening that will affect growth, bolstering the appeal of the yen against majors as a haven asset.

China reported stronger than expected GDP for the first quarter alongside the strongest pace of inflation rise since 2008 bolstering changes for a move by the central bank. Investors saw the possibility for the PBoC to boost reserve requirements as soon as today.

Equities and commodities moved lower on the prevailing fear and supported the yen to rise against majors. The USD/JPY moved south to set the lows of 82.94 from the high of 83.77 and currently hovering around 83.34.

The euro was a big burden on the market today where debt woes are back hunting the single currency undermining the reported rise in inflation to 2.7% and the shrink in the trade deficit. The euro fell against the dollar which powered greenback's gains. The EUR/USD moved south to set the low of 1.4439 after recording the high at 1.4503 and now hovering around 1.4445.

Eyes are set on Greece with the government set to announce today measures to meet its goals for deficit reduction as part of the struggle to contain its fiscal crisis that lead it to access a EU-IMF bailout.

The government's medium-term fiscal plan is to detail over 22 billion euros of deficit reduction mostly relying on spending cuts according to Finance Minister George Papaconstantinou through 2014. The government is also likely to present plans to raise about 15 billion euros by 2013 by asset sales.

In another move to complicate the crisis in the Euro Area, Moody's Investors Service once again reminded the market with the persistent agony and debt crisis in the euro area economy.

The cut Ireland's credit rating by two levels to Baa3 from Baa1with a negative outlook. Moody's said The country's weak economic growth prospects are driven by the fiscal consolidation process, the ongoing contraction in private-sector credit, and a more adverse interest rate environment.

The euro weakness and the jitters in the market powered the dollar index to move higher, especially as the euro accounts as the biggest weight in the index. The dollar index is trading at 74.80 recording the low of 74.61 and the high of 74.84.

As for sterling, the royal pound found the support to move higher on hawkish comments from BoE MPC member Andrew Sentence. He said that inflation in UK may exceed 5.0 percent despite the recent decline in inflation price, where the depreciation of the pound, may spur price acceleration over the upcoming period, accordingly, the need to hike rates remains valid.

There's still quite a bit of evidence that there's some further upward pressure on inflation to come, Sentance said in an interview, where he voted for interest hike since June 2010 as inflation threats continue to mount.

Sterling reversed higher versus the dollar after recording the lows of 1.6315 to trade now around 1.6363 below highs at 1.6372.

The market remains jittery on China and the debt woes in Europe as the focus turns to the G20 in Washington and the US data with inflation under the focus to see if the dollar will gain support from possible expectations for a fed move or the conditions will remains stable.