U.S. Dollar Trading weakened as the US stock market staged a 5% rally after Citigroup reported that the first 2 months of 2009 were profitable. Bernanke also spoke about banking reform and suggested changes to mark to market accounting procedures would benefit the current situation. · The Euro surged higher as stocks soared in Europe and Asia. Solid selling above 1.28 proved too big a hurdle for one day and the pair pulled back to supports at 1.2650. Euro weakness is still a theme that will require some time to turn around. · The Japanese Yen most of the crosses were very buoyant even as USD/JPY slumped on USD weakness. Leading Indicators fell 2.3% vs. -2% forecast. Equity market effects on the Yen are still pronounced but significantly less than previously. Sterling rallied with the pick up in risk appetite early Europe but weakness returned as the market remains concerned about the UK economy. Industrial Production fell -2.6% vs. -1.2%. As buying pressure waned the market sent the cable back to 1.3700. The U.K. currency dropped for a third day versus the 16- nation currency as the Bank of England prepared to print money to buy assets as part of a quantitative easing policy.
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