The dollar index rose to 82.563

Good Morning,

- The Dollar still in demand as stimulus talk from ECB , BOJ …Pledges of policy stimulus from the heads of the European Central Bank and the Bank of Japan pressured both the euro and the yen against the greenback.

- The common currency already trade below 1.32 level, while the dollar was up at 104.20 against the Japanese yen JPY, near a seven-month peak. The euro also lost ground against many other currencies, notably hitting a near 10-month low on the Australian dollar at A$1.4150 level.

- The dollar index rose to 82.563, its highest since September last year.

- ECB President Mario Draghi said the bank was prepared to respond with all its "available" tools should inflation drop further. In stronger language than usual, Draghi emphasized that inflation expectations were showing significant declines and noted a lower euro would help support domestic demand, possibly through fewer imports and greater consumption of locally-made products.

- Dovish was also Bank of Japan Governor Haruhiko Kuroda who vowed to press ahead with aggressive monetary easing for as long as needed to convince the public that deflation was dead and buried.

- Bank of Canada Governor Stephen Poloz wants to make something perfectly clear: When the Federal Reserve starts raising interest rates, Canada’s central bank won’t necessarily follow immediately. “The main thing people should understand is that our policy is quite capable of being fully independent, as it has been these past few years,”

- The time has come for France to resist Germany's "obsession" with austerity and promote alternative policies across the euro zone that support household consumption, firebrand French Economy Minister Arnaud Montebourg said on Sunday. Deficit-reduction measures carried out since the 2008 financial crisis have crippled Europe's economies and governments need to change course swiftly or they will lose their voters to populist and extremist parties, Montebourg told a socialists' meeting in eastern France. "France is the euro zone's second-biggest economy, the world's fifth-greatest power, and it does not intend to align itself, ladies and gentlemen, with the excessive obsessions of Germany's conservatives," Montebourg said. "That is why the time has come for France and its government, in the name of the European Union's survival, to put up a just and sane resistance.

- Credit Suisse on EUR/USD: The pair remains weak after completing its bearish "pennant" continuation pattern, removing the November 2013 low at 1.3295 and extending below our 1.3248/28 target – the 38.2% retracement of the entire 2012/2014 uptrend and the 61.8% retracement of the 2013/2014 rise. Bigger picture, with a major top in place we stay bearish for a move to 1.3020/15. Near-term resistance shows first at 1.3278, then 1.3298, with 1.3326/36 ideally capping to keep the immediate risk lower. Above can see a deeper recovery to 1.3366. CS entered fresh EUR/USD short on 1.3225 break targeting 1.3025.

- BOJ Kuroda said he felt Japan was on pace to hit its 2% inflation target as soon as this fiscal year – another prediction private forecasters widely doubt – and brushed aside suggestions for embracing new monetary tools, such as adopting new targets beyond the inflation rate. “Maybe in the future,” Mr. Kuroda said. “But at this stage I don’t think we should change our plan.” The current gap between investors and the BOJ tracks a similar disagreement earlier this year, when surveys showed large number of central-bank watchers assuming extra stimulus measures in the spring or summer, either to pre-empt the blow from the April tax hike, or to minimize the impact after the fact.

- Investors are exiting the gold market on speculation that signs of sustained U.S. economic growth will push the Federal Reserve closer to raising interest rates, cutting demand for bullion as an inflation hedge. Hedge funds reduced their bullish gold bets for the third time in four weeks, and open interest in New York futures and options are near the lowest in five years, U.S. government data show.

Have a nice Week!