FX Weekly: 7th March 2011

 Expected yield differentials between Europe and other nations overpowered the ongoing geo-political theme that’s supporting USD, CHF, Oil and Gold

 RBA kept rates on hold as expected, with AUD broadly weaker across the G20

 Strong set of US employment reports (ADP & non-farm payrolls) helped the USD; EUR/USD remains in buy-dips mode as key 1.40 level is tested in early Monday morning trade

 ECB maintains its 1% benchmark rate but outlook for future policy changed drastically as ECB press-conference blew the doors open to rate hikes on April 7th and/or May 5th




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