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EUR/USD

The dollar remained generally slightly weaker in early Europe on Thursday, but the Euro was unable to extend gains seen in the previous session.

The pattern of fluctuating sentiment towards the Euro persisted with markets less confident during the day. There was a fresh widening of yield spreads during the day with Greek bonds moving back to yield more than 400 basis points over German bunds. There was renewed speculation that the support package would not be able to mask the underlying stresses with the weaker member countries trapped in an environment of weak growth. The Euro dipped sharply to lows near 1.3520 with some reports of central bank selling of the currency.

The US economic data ...

Biggest % gainers: USD/CHF up 0.45%, USD/CAD on mild USD strength.

Biggest % losers: CHF/JPY down 0.99%, EUR/JPY, AUD/JPY, GBP/JPY, USD/JPY on very strong yen.

USD Building Permits better at 0.69M(million) vs. 0.63M expected. Last time revised upward to 0.64M from 0.61M formerly.

USD Housing Starts better at 0.63M vs. 0.60M expected. Last time revised higher at 0.62M vs. 0.58M formerly.

FOMC's Warsh speaks at 9am EST today.

University of Michigan Sentiment comes out at 9:55am EST today. Expectation is for 74.7. Last time has already been revised upward to 73.6 vs. 72.5 formerly.

FOMC's Hoenig speaks at 1pm EST today.

Gold $1147 ...

EUR/USD

The dollar edged higher ahead of the US open on Wednesday, but was unable to make strong headway as resistance levels held.

The US retail sales data was stronger than expected with a 1.6% in headline sales for March after a revised 0.5% increase the previous month. There was also a solid 0.6% increase in underlying sales for the month which maintained optimism over the near-term economic outlook.

The consumer prices data failed to have a significant impact with a 0.1% increase in prices for March while the core rate was slightly weaker than expected with no change in prices for the month to give a 1.1% annual increase. Despite important medium-term reservations, the data will not increase ...

Biggest % gainers: USD/CHF up 0.72%, GBP/CHF, AUD/CHF on CHF weakness.

Biggest % losers: EUR/JPY down 0.73%, EUR/USD, EUR/CAD, EUR/GBP, EUR/AUD on EUR weakness.

Oil $85.79
Gold $1,153

ECB's Stark says that they may have entered the next phase of crisis - a sovereign debt crisis and says that the ECB still views record low interest rates as appropriate.

ECB’s Stark Says Inflation Risks Seem ‘Tilted to the Upside’

USD Weekly Unemployment Claims worse at 484k vs. 439k. Reading was 460k last time.

USD TIC Long-Term Purchases better at 47.1B vs. 34.2B expected. Last time was revised down to 15.0B vs. 19.1B formerly.

USD Philly Fed ...