From Marc Chandler at Bannockburn Global Forex:
The US dollar is mostly softer today as North American participants enter the fray. Trading remains quiet and the general consolidative tone continues amid a relatively quiet news stream. Although US and Iranian talks are set to continue next week, the market remains on edge.
There are three developments to note. First, the PBOC abolished the reserve requirement on foreign exchange forwards and adjusted rules to make it easier for Chinese banks to provide yuan liquidity to offshore markets. This has the effect of weakening the yuan. Second, the Danish Prime Minister has called for snap election for next month (March 24) to secure a stronger mandate as it seeks a stronger hand to resist US pressure over Greenland. Third, the Greens won the byelection in the Gorton and Denton constituency in Great Manchester. This would seem to complicate the Labour government’s challenge, which is from both the right and left....
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....Data
• US PPI inflation looks to have slowed in January. A 0.3% rise in the headline and core rate will, given the base effect, allow the year-over year headline rate to slow to 2.6% (from 3.0%) and the core rate to 3.0% (from 3.3%). The Chicago PMI may receive some passing interest ahead of November construction spending.....
.....MUCH MORE