There was no change to be mentioned on the Euro exchange rates after the ECB waited tightening actions as it was very widely expected since the ECB president Mr. Trichet has said that it is strong vigilance warranted to watch the prices which is that the ECB is closely monitoring inflation referring to that the decision was unanimously and it is not an action of a series to be taken and it is left to the developments of the inflation which is still heading up as what has been seen in the flash figure of Mar EU CPI which has risen to 2.6% from 2.4% in February yearly and he has confirmed also the encouraging of Portugal to take a share of the aid of the European bailing out plan and he has stressed that the decision is to anchor the prices rising and to restore prices stability over the medium term for the majority of the 331 millions of the Euro...

The cable has come under pressure again after the release of UK manufacturing productions of March which have come unchanged from February while the market was waiting for increasing by .5% from .9% in February and also the industrial productions of March have come weaker than expected easing back by 1.2% while the market was waiting for increasing by .4% from .3% in February and these weak data come after the recent declining of UK PMI manufacturing index which has fallen in March to 57.1 from 61.5 in February while the market was waiting for 60.9 which shows that there can be harder times in the case of further rising of the commodities and energy prices.

The single currency has been well-supported above 1.42 since the beginning of the week as the market is waiting for the ECB's decision to raise the interest rate by .25% to 1.25% to be the first tightening action after the credit crisis for containing the inflation upside risks after it had reached 2.6% y/y in a preliminary reading of March from 2.4% y/y in February and these are well above the ECB target which is 2% yearly.

Biding the Japanese yen looks growing containing the current market sentiment as the investors have realized that further appreciation of the Japanese yen can be capped by the Japanese concluded intervention specially after it has had a joint agreement from the other great industrial countries for underpinning the Japanese exports which moving the growth of the Japanese economy after these disaster of the earthquake and its negative impacts on the Japanese exports which have become exposed to the nuclear radiations worries which makes the BOJ intervention subjected to the minimal possible criticism from the European exporters.