• USD: Higher, Greek fiscal worries and tensions with China over Yuan revaluation, Philly Fed rises
  • JPY: Mixed, manufacturing sentiment improves, gains limited as US equities rally
  • EUR: Lower, Greece may seek IMF aid as EU aid to Greece appears less likely
  • GBP: Lower, February budget deficit smaller than expected, CBI orders decline
  • CAD and AUD: AUD & CAD lower, Canadian net foreign investment flows rise

    Overview

    The USD traded higher Thursday supported by concern about the Greek fiscal outlook and in reaction to increasing tensions between the US and China over the value of the Yuan. EUR was pressured by a Dow Jones report that Greece may seek IMF aid as aid from the EU seems less likely. Greek PM says it will give the EU one month to decide on an aid plan. US officials tell China that the value of the Yuan is a real concern. There is a movement in U.S. Congress to name China as a currency manipulator. Chinese officials continue to push back against pressure to revalue the Yuan and state that a rise in the Yuan would be a disaster for Chinese exports. US and Chinese rift over the Yuan dampens risk appetite and sparked selling of the commodity currencies. CAD outperformed supported by report of strong net foreign investment flows to Canada and diminished threat of BOC intervention. JPY traded higher in reaction to today’s drop in risk appetite and by report of improving manufacturing sentiment in Japan. GBP traded lower in reaction to a decline in UK CBI orders with downside limited by report of smaller than expected UK February budget deficit. Today's US economic data was mixed with February CPI unchanged and jobless claims came in slightly higher than expected. Continuing claims unexpectedly rose by 12k. The US current account deficit widened by less than expected in the fourth quarter. LEI was reported a bit weaker than expected and the Philly Fed came in above expectation. Today's US economic data points to a slow US recovery with low inflation and USD consolidated early gains.

    Today’s US data:

    February CPI was unchanged, a reading of 0.1% was expected. Initial jobless claims for the week ending 03/13 declined by 5k to 457k, a reading of 455k was expected. February LEI rose by 0.1%, a reading of 0.2% was expected. March Philly Fed came in at 18.9, a reading of 18 was expected. US current account deficit widened to $115.59bln.

    Upcoming US data:

    No major US data is due for release Friday.