Yesterday the dollar fell versus most major counterparts as data showed the most Americans since January filed for jobless benefits last week, supporting the argument that monetary policy should stay stimulative to spur growth.

The euro strengthened versus the dollar as Italy’s 10-year bonds rose for a second day, pushing yields down from an almost two-month high of 5.73 percent reached. The nation sold 4.88 euros ($6.4 billion) of securities, close to its 5 billion-euro maximum target for the sale.

The yen dropped versus major peers as Bank of Japan Governor Masaaki Shirakawa said policy makers will “pursue powerful easing.” Defeating deflation and achieving sustained growth are important tasks for the central bank, Shirakawa said in Tokyo.

The pound fell as a result of published data on the trade balance. Sharp fall in exports to countries outside the EU in February, partly because of falling car exports in January increased the trade deficit. Merchandise trade deficit widened to 8.772 billion pounds in February to 7.883 billion pounds in January, far more than analysts had expected.

EUR/USD: yesterday the pair gain, touched level $1.3200.

GBP/USD: yesterday the pair gain on a floor of a figure, showed a new week’s high.

USD/JPY: yesterday the pair traded in range Y80.70-Y81.10.

European data starts at 0600GMT with final HICP data from Germany where the preliminary reading was 0.4% m/m, 2.3% y/y. UK data at 0830 includes the Producer Price Index and also Construction Output data. US events start at 1200GMT when New York Fed President William Dudley speaks to the Buffalo Niagara Partnership's Movers & Shakers Breakfast and will answer questions from the audience. In the afternoon he will visit the Roswell Park Cancer Institute. US data starts at 1230GMT when consumer prices are forecast to rise 0.3% in March following the energy-driven jump in February. Then, at 1700GMT, Federal Reserve Chairmman Ben Bernanke will speak to the Russell Sage Foundation and The Century Foundation on "Rethinking Finance".