Greenback on top as PPI burns expectations....>

FOREX: Greenback on top as PPI burns expectations

-After a generally positive CPI report earlier in the week, March PPI further

supported the greenback by suggesting firm underlying inflation dynamics across

a number of categories. On top of that, initial jobless claims were particularly

strong, hitting the lowest level since 1969.  As a result, the USD index was bid

throughout the US trading session, helping tip USD/JPY back above the 200-dma at

Y111.50.

-Elsewhere, AUD and other commodity-tied currencies extended weakness throughout

the NY session.  A weaker commodity complex spread from energy products into

both precious and industrial metals (and the firmer USD didn't help either),

prompting the ZAR to also trim a large chunk of recent gains.

-Equities had a mixed session, with European outperforming the US, as attention

turns to US earnings season beginning in earnest tomorrow: Wells Fargo and

JPMorgan report alongside a few other financials.

-US import/export price index data and prelim Uni. of Michigan survey are the

data highlights. ECB's Praet, BoE's Carney and BoC's Lane are all due to speak.