Currency Breifing

The shift in risk appetite continues to be the primary driver in FX pricing as the uncertainty over policy steps the European Central Bank may take. The Australian dollar earlier climbed to its highest in more than six months against the euro but then retreated sharply after Asian
shares fell, prompting investors to reduce risky bets including the Aussie, also pushing the yen broadly higher. ECB President Jean-Claude Trichet signaled on Sunday during a trip to Tokyo that the bank's next move could likely be an interest rate cut of 25 basis points. There are
also chances that the ECB will follow the Federal Reserve, the Bank of England and the Bank of Japan in making asset purchases to contain the financial crisis. The ECB chief also said he appreciated U.S. comments that a strong dollar was in U.S. interests. Data released in the euro zone saw the February trade deficit improved to -€4.0 billion from -€5.4 billion. Economic calendar is light today with only US Leading Indicators.