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FX Highlights

  • USD firms versus Europe with EUR pressured by comments from ECB President Trichet that the ECB will decide on unconventional measures at the May policy meeting, EUR was also pressured by report that Moody's plans to put Ireland's bond rating on watch, CHF lower as Swiss retail sales drop sharply and SNB threatens intervention, CAD lower as Canadian CPI falls more than expected
  • Japan's February tertiary index falls to a four year low down 0.8%, BOJ governor Shirakawa says the Japanese economy is worsening sharply and more deterioration is likely, JPY mixed gains in cross trade to Europe
  • Australia's Q1 CPI rises 0.3%, and 3.0% y/y, high yield currencies marginally lower on reduction of risk even as stocks rise, AUD mixed
  • ECB President Trichet says ECB will decide on unconventional monetary measures at the May policy meeting, Trichet expects global recovery to start in 2010, Moody's may cut Ireland's bond rating, EU trade deficit smaller than expected but exports fall, EUR lower
  • Swiss February retail sales fall 3.8%,y/y,SNB says they will continue with the policy of FX intervention as long as deflation is a risk ,CHF lower
  • BOE 's Barker says inflation targeting is not enough, GBP lower versus USD gains versus EUR
  • Canada's annual inflation rate slowed to 1.2% in March from 1.4% last month, CAD lower
  • Fed 's Yellen says the US economy is not out of the woods and still contracting, Feds Fisher says US in bone crushing recession, global recession worse than 1940s , inflation not a threat for the next couple of years, Fed policies will expedite recovery
  • Nikkei reports that China's foreign minister said that China plans to keep buying US
  • Fed's Lockhart expects US economic downturn to end soon and upturn in Q3, he does not expect a strong recovery
  • IMF Strauss- Kahn says yuan is substantially undervalued and called on China to let the yuan appreciate
  • US equity market set to open higher, European equities close higher, Nikkei closed 157 points higher

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