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EUR/USD

The dollar strengthened to near 1.4350 in Europe on Thursday with a weak German retail sales report unsettling the Euro as there was a further 1.1% decline which reinforced expectations of a weak outlook for the Euro-zone economy.

There were further warnings over currencies from French officials, pledging that currency imbalances would be a major topic during 2010. There were also in effect further protests against Euro strength which will also tend to unsettle the currency. Officials are concerned that that the Euro would be caught between competitive devaluations for the dollar and yen and be pushed to an artificially strong position which would undermine exports.

The US jobless claims ...

EUR/USD

The Euro weakened further to the 1.43 area on Wednesday as there were renewed fears over the situation surrounding the Greek debt situation. There were reported remarks from ECB member Stark that Greece could not rely on external support which increased fears over a possible debt default.

The Euro-zone industrial orders data was also weaker than expected, although the impact was limited.

The latest US PMI index for the services sector was slightly weaker than expected with the increase for December held to 50.1 from 48.7 the previous month. The employment component improved over the month, but remained well below the 50.0 threshold for employment expansion.

The ADP employment ...

Biggest % gainers: USD/JPY up 0.77%, USD/CHF, AUD/JPY, AUD/CHF, AUD/NZD on mild Aussie strength as they blew out their retail sales numbers to the upside last night. Now more traders are thinking rate hikes might be back on the table.

New Japanese Finance Minister says he'd like to see the yen weaken to 95 (on USD/JPY). Kan Rewinds Stance on Yen Policy to Avoid ?Fatal Blow? to Japan - Bloomberg.com

Biggest % losers: NZD/USD down 0.50%, GBP/USD, EUR/USD on mild USD strength. No very strong movers either way this morning but that's typical as we approach the Non-Farm Payroll numbers on Friday.

Central Bankers meet this weekend in Switzerland with Private Banks to discuss regulation: Central Bankers to Gather With Private Banks at BIS (Update4) - Bloomberg.com ...

EUR/USD

A dip in US Treasury yields and firm risk appetite helped trigger a renewed test of dollar support beyond 1.4450 against the Euro in early Europe on Tuesday. With speculative investors having already increased their dollar holdings, it was again difficult to secure further strong US currency buying support.

The German unemployment data was again stronger than expected with a 3,000 decline for December compared with expectations of a monthly increase. The Euro-zone headline inflation rate increased to 0.9% from 0.5% the previous month which was in line with market expectations and the Euro was unable to make further headway with a decline to the 1.44 area ahead of the US open.

The US pending ...