€ The euro depreciated vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.3395 level and was capped around the $1.3535 level. Liquidity is expected to taper off later in the week and is expected to evaporate on Friday after the release of non-farm payrolls. Data released in the U.S. today saw the January S&P/ CaseShiller home price index climb 0.32% m/m and decline 0.7% y/y while March consumer confidence improved to 52.5 from 46.4 in February. Data to be released in the U.S. tomorrow include MBA mortgage applications, March ADP employment, March Chicago PMI, and February factory orders. The most important data of the week will be released on Friday when March non-farm payrolls data are released. Some economists are focusing on job gains of +185,000 with the unemployment rate expected to print at 9.7%. Economists will also be interested to see if average weekly hours worked increase from last month's reading of 33.8. Chicago Fed President Evans speculated the U.S. unemployment rate might be 9.25% at the end of 2010 and above 7% at the end of 2011. Fed Chairman Bernanke will testify on 14 April to the Joint Economic Committee.
In eurozone news, traders await the release of EMU-16 unemployment tomorrow with some expecting the rate to print as high as 10.0%, above the prior reading of 9.9%. Also, March flash EMU-16 consumer price inflation data will be released tomorrow with some economists expecting a 1.1% y/y gain, especially after German CPI data came in hotter-than-expected. Data released in Germany today saw February import prices up 1.0% m/m and 2.6% y/y while French data saw Q4 gross domestic product up 0.6% q/q and off 0.3% y/y. February producer prices will be released tomorrow. Euro bids are cited around the US$ 1.3335 level.
¥/ CNY The yen depreciated vis-à-vis the U.S. dollar today as the gree
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[/caption] S&P Emini 500 Futures gapped up 4.75 points at the open, and the gap remained open at the end of the day. Today's action created a new market high since the March 2008 lows. The high came on very light trading. Volume was just little over a million contracts which is about half of the 50 day average. Highs marked on light volume are suspect. It will take a high volume follow through by the markets in the next 2-3 days to validate the upward market direction. All of the time frames show an overbought condition, so be alert for a downward correction. Expect to see support at the 1170 level before a retest of the current highs. 
