FX Weekly: 28th March 2011

 Angela Merkel's party loses power in Baden-Wuerttemberg

 Retail sales data in the UK and Canada show consumer-sector strength waning in both tight (Canada) and loose policy (UK) environments

 Portuguese parliament failed to implement budget-tightening measures – fresh concern about peripheral bond restructuring and ability of PIIGS to maintain fiscal austerity pledges – EUR/ USD lower, EUR volatility higher

 Japanese economic damage estimate published; nuclear issue remains in play




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