U.S. Dollar Trading (USD) risk was on and the USD under pressure against all currencies with the notable exception of the Yen which saw weakness across the board. February Retail Sales were strong at 0.3% vs. -0.2% forecast and added to the markets optimism. In US stocks, DJIA +12 points closing at 10624, S&P -1 points closing at 1149 and NASDAQ -1 points closing at 2367. Looking ahead, February Industrial Production forecast at -0.15 vs. 0.9% previously.

The Euro (EUR) was extremely buoyant breaking above 1.3700 in early Europe and enjoyed a solid run up to 1.3800. January Industrial Production was promising at 1.7% vs. 0.7% forecast. EUR/JPY tested Y125 after the US Retail Sales numbers. Overall the EUR/USD traded with a low of 1.3670 and a high of 1.3796 before closing at 1.3758. Looking ahead, Q4 Employment previously at -0.5% q/q.

The Japanese Yen (JPY) the weak trend continued as the crosses rallied and USD/JPY tested Y91. The market is focused on this weeks FOMC/BOJ double combination in what could result in a further divergence of interest rate expectations. Overall the USDJPY traded with a low of 90.18 and a high of 91.08 before closing the day around 90.50 in the New York session.

The Sterling (GBP) tracked the Euro higher to break above resistance at 1.5200 as European currencies enjoyed support on subsiding Greece fears. Also helping the USD weaken was talk that noted Dove FED Member Yellen would be nominated as Vice Chairman. Overall the GBP/USD traded with a low of 1.5028 and a high of 1.5217 before closing the day at 1.5181 in the New York session.

The Australian Dollar (AUD) was strong on the improvement in risk appetite and AUD/JPY buying but underperformed the rest of the market. Capping gains on the Aussie was solid resistance above 0.9180 and the continued weakness in Gold. Overall the AUD/USD traded with a low of 0.9141 and a high of 0.9194 before closing the US session at 0.9156.

Oil & Gold (XAU) rallies were once again sold back to the Key $1100 support level. Overall trading with a low of USD$1098 and high of USD$1120 before ending the New York session at USD$1102 an ounce. Crude Oil traded at fresh Year highs above $83 before reversing hard on profit taking in the US session. Crude Oil was down $0.87 ending the New York session at $81.24.

Euro 1.3760

Initial support at 1.3621 (Mar 11 low) followed by 1.3531 (Mar 5 low). Initial resistance is now located at 1.3839 (Mar 9 high) followed by 1.3903 (Feb 4 high)

Yen 90.65

Initial support is located at 89.63 (Mar 9 low) followed by 88.14 (Mar 4 low). Initial resistance is now at 91.09 (Mar 12 high) followed by 91.29 (Feb 23 high).

Pound 1.5170

Initial support at 1.4947 (Mar 11 low) followed by 1.4873 (Mar 10 low). Initial resistance is now at 1.5218 (Mar 12 high) followed by 1.5317 (Feb 26 low).

Australian Dollar 0.9170

Initial support at 0.9111 (Mar 11 low) followed by the 0.9056 (Mar 4 low). Initial resistance is now at 0.9211 (Jan 20 high) followed by 0.9243 (Jan 20 high).

Gold 1104

Initial support at 1098 (Mar 12 low) followed by 1094 (0.5 of 1044.85-1144.98). Initial resistance is now at 1128 (Mar 10 high) followed by 1144 (Mar 3 high).

Oil 80.90

Initial support at 80.00 (Intraday Support) followed by 78.00 (Intraday Support). Initial resistance is now at 83.20 (March High 2010) followed by 85.00 (Intraday Resistance).

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