The dollar index rose to as high as 96.062

Good Morning,

- Euro hovers near a fresh 11-yr low, waiting of ECB easing programme details from Mr. Draghi. The common currency last trade to $1.1050 level, holding just above to a new low of $1.1030, which was its lowest level since September 2003.

- Asian stocks slipped after Wall Street trade on a correction mode from record highs.

- The dollar index rose to as high as 96.062, its also strongest level since September 2003.

- French 4Q unemployment rate rises to 10.4% vs 10.3%.

- Germany’s new orders in manufacturing in January 2015 decreased a seasonally and working day adjusted 3.9% on December 2014 (following a corrected +4.4% in December 2014 on November 2014). Domestic orders in January 2015 decreased 2.5% and foreign orders by 4.8%.

- Mario Draghi is leading the euro area into a new phase of monetary stimulus hampered by the same old political problems. While the European Central Bank president’s 1.1 trillion-euro bond-buying plan may be enough to skirt deflation, it cannot make governments play their part with structural reforms. That leaves him continuing to cajole politicians as he deals with the fallout from recurrent financial crises in weak economies. As the Governing Council meets in Nicosia to settle the details of an asset-purchase program that could start this week, the risk is that it is simply delaying a day of economic reckoning. From Greece’s attempt to jettison its aid program to French sluggishness in cutting its debt, euro-area leaders have shown a reluctance to take the steps the ECB says are essential for sustainable growth.

- Market have already driven yields across Europe to record lows in anticipation of the ECB's largesse, greatly widening the yield advantage of the U.S. dollar in the process.

- Credit Agricole on EUR/USD: The USD has been well supported of late, mainly on the back of rising Fed rate expectations. Rising growth expectations to the benefit of stabilising price developments keeps all options open in regard to the Fed considering higher rates as soon as mid-year. This week’s main focus turns to US labour data, which we expect to confirm a view of further improving growth conditions, to the benefit of further rising rate expectations and the USD. However, even in the case of a negative surprise we expect USD dips to remain a buy, for instance against the EUR and JPY. Accordingly, we remain short EUR/USD as a trade targeting a move towards 1.06 in the medium-term.

- Japan's weekly capital flows data released today showed that foreign investors bought a net 624.5 billion yen in overseas equities in the week ended Feb. 28. That is the second largest amount from 2005, and marks the 15th straight week of net purchases.

- China's Premier Li Keqiang said the world's second largest economy would target growth this year of around 7 percent, signaling the lowest expansion for a quarter of a century.

- Deputy Governor of the Reserve Bank of Australia (RBA), said the Australian dollar was much closer to fair value than at any time in the past couple of years. The comment was taken as a softening in the RBA's long-standing verbal campaign for a lower currency and drove the Australian dollar to as high as $0.7840. Also says monetary policy still working, still effective, do have scope to lower rate if appropriate.

- Saudi Arabia: Don't blame us for oil's big plunge. SA isn't a fan of the "conspiracy theories" surrounding the kingdom's oil policies. Oil took a massive plunge from over $100 a barrel in July to under $50 in January. SA refusal to cut production, especially when oil hit around $70 at Thanksgiving, raised eyebrows about the country's motives. In the past, SA would respond to a supply glut like the current one by pumping less oil.

- Watch today: Euro zone retail PMI, US jobless & factory orders.

Have a nice Day !