The dollar fell to a one-week low against the euro, as the report showed that the level rose more than expected. Labor Department reported that the consumer price index rose 0.7 percent in February after he remained at a minimum level in the previous three months. Economists had expected the consumer price index increased by 0.4 percent. The inflation rate in the measurement of the maximum monthly from June 2009. Meanwhile, the core consumer price index, which excludes food and energy, rose 0.2 percent in February after increasing 0.3 percent in January. Increase in price corresponds to the estimates of economists. The rise in prices has occurred as a consequence of a sharp rise in energy prices, which have jumped in February to 5.4%, while food prices rose only 0.1%.

The U.S. currency is sent to its first weekly decline against the Euro currency since early February, as many participants are waiting for the meeting of the Open Market Committee, which will take place next week. It is assumed that this meeting may be revised terms of asset-purchase program, known as quantitative easing, or QE.

The pound rose sharply against the dollar in the first half of trading after the Bank of England Governor Mervyn King said that the politicians are not trying to weaken the currency. Pound close to the maximum level against the dollar this month, while the King, in an interview with ITV News said yesterday that "the market determine the exchange rate, and not of us." Once in the past couple quarters of the Bank of England King gave a verbal intervention against the high rate of the national currency, now he changed the tone of his statements and "finds comfort current levels by the pound." But in spite of this strengthening, the pound rose sharply in the second half of the session, helped by weak U.S. data. Note that in March consumer sentiment index, calculated by Reuters and the University of Michigan, dropped to a mark of 71.8 was significantly lower than the forecast 78.2 and February's 77.6 result. Published data have disappointed the markets, especially the expectations of Michigan preliminary index un-ta/Reuters, which in March fell to 61.7 against 70.2 in February. At the same time, a preliminary index of current conditions un-ta/Reuters Michigan in March fell to 87.5 against 89.0 in February. Index of 5-year inflation expectations at Michigan un-ta/Reuters in March rose by 2.9%, while the 12-month inflation expectations un-ta/Reuters Michigan in March added 3.3%.

European (SXXP) stocks declined from a 4 1/2-year high, as European Union leaders eased constraints on national budgets amid a deepening euro-area recession, while confidence among American consumers unexpectedly slid in March.

The Stoxx Europe 600 Index fell 0.4 percent to 297.46 at the close of trading. The gauge added 0.7 percent this week, for a fourth straight weekly advance, its longest winning streak since December.

National benchmark indexes fell in all of the western European markets except Switzerland.

FTSE 100 6,489.65 -39.76 -0.61% CAC 40 3,844.03 -27.55 -0.71% DAX 8,042.85 -15.52 -0.19%

In the U.S., the Thomson Reuters/University of Michigan preliminary sentiment index for March fell to 71.8 from 77.6 in February. The gauge was projected to increase to 78, according to the median estimate of economists.

Volkswagen’s preferred shares declined 2.6 percent to 160.30 euros. Waddell & Reed sold 914 million euros ($1.19 billion) of the stocks, after they touched a four-month low yesterday on the carmaker’s 2013 outlook. The 5.78 million shares were sold for 158 euros each, a 4 percent discount to yesterday’s close, Deutsche Bank AG said.

Vivendi (VIV) lost 3.3 percent to 16.10 euros. The company halted the planned sale of GVT after failing to get a satisfactory bid for the division, which had been valued at 5.2 billion euros.

Ingenico, a French provider of payment terminals and services, declined 2.9 percent to 44.64 euros. Safran’s Morpho will sell 6.6 million Ingenico shares, or a 12.57 percent stake, in a private placement, while retaining a 10.2 percent stake.

Banca Popolare dell’Emilia Romagna Scarl jumped 10 percent to 6.01 euros. Exane BNP Paribas raised its target price for the shares by 5 percent to 8.30 euros, citing the benefits of the bank’s funding structure, which is based on retail deposits.

The cost of oil rose today, while rising above $ 110 per barrel as strong U.S. economic data fueled prospects for increasing demand for the largest oil consumer in the world, while concerns about supply from the Middle East supported prices.

Also note that the price increases have contributed to industrial production data. The Fed said that industrial production rose by 0.7 percent in February after it had remained at the same level in January. Economists had expected production to increase by 0.3 percent.

The report also said that the capacity utilization rate rose to 79.6 percent in February compared with a revised 79.2 percent in January. The growth of industrial production in February was due primarily to increased production of expensive consumer goods and production in the utility sector in the cold season. Total industrial production, which includes industry, mining and utilities sector grew by 2.5% compared with a year earlier. The production of goods increased by 0.8% in February, after declining in the previous month. The largest growth was in the consumer durable goods - a category of products, which includes electronics and automobiles. Production of motor vehicles and parts increased by 3.6%, succeeding decline the previous month.

We add that this report came after strong data on employment in the U.S., which were published yesterday, also helped convince investors that demand for energy will be stable.

Oil prices also got support Thursday from President Barack Obama's comments that military force remains an option if sanctions and diplomacy would fail to curb Iran's nuclear ambitions.

April futures price of U.S. light crude oil WTI (Light Sweet Crude Oil) rose to 93.50 dollars a barrel on the New York Mercantile Exchange.

April futures price for North Sea petroleum mix of mark Brent rose $ 0.66 to $ 10.10 a barrel on the London Stock Exchange ICE Futures Europe.

Gold prices rose today, while still achieving maximum protection, helped by the data provided by the United States. As shown by a report from the Ministry of Labour, the consumer price index rose 0.7 percent in February after he remained at a minimum level in the previous three months. Economists had expected the consumer price index increased by 0.4 percent. The inflation rate in the measurement of the maximum monthly from June 2009. Meanwhile, the core consumer price index, which excludes food and energy, rose 0.2 percent in February after increasing 0.3 percent in January. Increase in price corresponds to the estimates of economists. In addition, note that the price increase has occurred in consequence of a sharp rise in energy prices, which have jumped in February to 5.4%, while food prices rose only 0.1%.

We also add that given that the figure was within the acceptable range for the Fed, it is assumed no further action, as it is just a natural by-product of monetary easing.

Note that the precious metal reached $ 1,597 after the data, but failed to break through the barrier of $ 1600. Now prices have settled in USD $ 1595, also received support from the decline of the dollar index.

April futures price of gold on COMEX has increased, and now stands at 1595.40 dollars per ounce.

EUR/USD  $1.2900, $1.2920, $1.2950, $1.3050, $1.3100, $1.3150, $1.3180, $1.3195

USD/JPY Y95.00, Y95.80, Y96.00, Y96.10, Y96.75, Y97.00

EUR/JPY Y123.50, Y124.70

GBP/USD $1.4900, $1.4950, $1.5030, $1.5100, $1.5150

EUR/GBP stg0.8755

USD/CHF Chf0.9350, Chf0.9450, Chf0.9550

EUR/CHF Chf1.2200, Chf1.2315, Chf1.2400

AUD/USD $1.0225, $1.0250, $1.0325, $1.0370, $1.0380, $1.0400

U.S. stock-index futures were little changed, after inflation data and data on industrial production.

Global Stocks:

Industrial production in the U.S. increased by more than economists had been expecting in the month of February, according to a report released by the Federal Reserve on Friday.

The Fed said industrial production rose by 0.7 percent in February after coming in unchanged in January. Economists had expected production to increase by 0.5 percent.

The report also said that the capacity utilization rate rose to 79.6 percent in February from a revised 79.2 percent in January.

While the Federal Reserve Bank of New York released a report on Friday showing that conditions for New York manufacturers continued to improve in March, the pace of improvement unexpectedly showed a modest slowdown compared to the previous month.

The New York Fed said its general business conditions index edged down to 9.2 in March from 10.0 in February, with a positive reading indicating an increase in regional manufacturing activity. Economists had expected the index to come in unchanged.

Consumer prices in the U.S. rose by more than expected in the month of February, according to a report released by the Labor Department on Friday, with the monthly price growth largely due to a sharp jump in energy prices.

The Labor Department said its consumer price index rose by 0.7 percent in February after coming in essentially unchanged in each of the two previous months. Economists had been expecting consumer prices to increase by about 0.5 percent.

Meanwhile, core consumer prices, which exclude food and energy costs, edged up by 0.2 percent in February following a 0.3 percent increase in January. The increase in core prices matched estimates.

EUR/USD

Offers $1.3160/65, $1.3130/35, $1.3100/10, $1.3070/80

Bids $1.2980/70, $1.2960, $1.2880/60, $1.2850

GBP/USD

Offers $1.5250/60, $1.5220/30, $1.5200, $1.5170/80

Bids $1.5110/00, $1.5050/40, $1.5010/00, $1.4890

AUD/USD

Offers $1.0455/60, $1.0450, $1.0415/20, $1.0400

Bids $1.0350, , $1.0340/30, $1.0320, $1.0310/00, $1.0285/80

EUR/GBP

Offers stg0.8800, stg0.8715/25, stg0.8695/700, stg0.8680/85, stg0.8665/70

Bids stg0.8600, stg0.8575

EUR/JPY

Offers Y126.95/00, Y126.45/50, Y126.10, Y125.90/00

Bids Y125.25/20, Y124.90, Y124.85/80, Y124.70/60, Y124.50, Y124.30, Y124.10/00

USD/JPY

Offers Y97.50, Y97.25, Y97.00, Y96.45/50, Y96.25/30

BidsY95.70, Y95.50, Y95.20, Y95.00

European stocks declined from a 4 1/2-year high, as European Union leaders eased constraints on national budgets amid a deepening euro-area recession. European Union leaders endorsed “structural” budgetary assessments, using code for granting countries such as France, Spain and Portugal extra time to bring down deficits. Still, balanced budgets remained the goal and there was no talk of large-scale spending programs or bond issues.

European political chiefs also paved the way for finance ministers to wrangle a rescue for Cyprus today as the euro area seeks progress toward a bailout that’s been batted about for nine months.

Bwin.Party sank 4.6 percent to 144.6 pence. Gross average daily revenue in January and February fell 7 percent from the final quarter of 2012 after a decision to “focus on nationally regulated markets and on high value customers,” the gambling company said.

Vivendi lost 3.5 percent to 16.07 euros. The company halted the planned sale of GVT after failing to get a satisfactory bid for the division, which had been valued at 5.2 billion euros ($6.8 billion).

Ingenico, a French provider of payment terminals and services, declined 3.6 percent to 44.35 euros. Safran’s Morpho will sell 6.6 million Ingenico shares, or a 12.57 percent stake, in a private placement, while retaining a 10.2 percent stake.

FTSE 100 6,506.76 -22.65 -0.35%

CAC 40 3,853.41 -18.17 -0.47%

DAX 8,055.77 -2.60 -0.03%

Inflation in euro area slowed to 1.8 percent in February from 2 percent in January, matching preliminary estimates, data from Eurostat showed Friday.

This was the lowest rate of inflation since August 2010. A year earlier the rate was 2.7 percent. Monthly inflation was 0.4 percent in February.

Telecommunications, medical and paramedical services and garments had the biggest downward impacts on the overall inflation level, the statistical office said.

The core inflation rate, that excludes price changes in energy, food, alcohol and tobacco, remained unchanged at 1.3 percent.

EUR/USD  $1.2900, $1.2920, $1.2950, $1.3050, $1.3100, $1.3150, $1.3180, $1.3195

USD/JPY Y95.00, Y95.80, Y96.00, Y96.10, Y96.75, Y97.00

EUR/JPY Y123.50, Y124.70

GBP/USD $1.4900, $1.4950, $1.5030, $1.5150

EUR/GBP stg0.8755

USD/CHF Chf0.9350, Chf0.9450, Chf0.9550

EUR/CHF Chf1.2200, Chf1.2315, Chf1.2400

Asian stocks rose, with the regional benchmark index poised to advance for a fourth week, after U.S. jobless claims unexpectedly dropped and Japan’s upper house confirmed Haruhiko Kuroda as central bank governor.

Nikkei 225 12,560.95 +179.76 +1.45%

Hang Seng 22,533.11 -86.07 -0.38%

S&P/ASX 200 5,120.24 +88.02 +1.75%

Shanghai Composite 2,278.4 +8.12 +0.36%

Honda Motor Co., a Japanese carmaker that gets 44 percent of sales from North America, gained 2.6 percent.

Sony Corp. surged 11 percent in Tokyo after Daiwa Securities Group Inc. recommended buying shares of the consumer electronics maker.

Dollar exchange rate fell substantially against the euro, after reaching the highest level since December, as the attention of many participants shifted to a two-day summit in Brussels.

We also add that from the fall of the dollar is not saved even better than expected data. Note that The Ministry of Labor will present another positive sign for the U.S. labor market, published a report showing that the number of initial claims for unemployment benefits unexpectedly fell in the week ended March 9. The report shows that for the week of March 10, the number of applications for unemployment benefits fell to 332,000, which is 10,000 less from the previous week's revised figure 342 000.Padenie surprise to economists, who had expected that the number of applications for unemployment benefits increase to 355,000 from 340,000, which was originally reported last week. The number of repeat orders decreased from 3.113 million to 3.024 million vs. 3.100 million

The yen rose against the dollar after it dropped to the weakest level since August 2009, which was due to the fact that the lower house of parliament has approved as the next head of the Central Bank Haruhiko Kuroda, who is a proponent of increasing incentives.

The pound rose against the dollar, departing from the weakest level in seven months, helped by speculation that Qatar will invest in infrastructure projects, which immediately led to a greater demand for sterling. In addition, note that the growth rate was also associated with the fact that many market participants are awaiting publication of the annual budget for 2013, which will be on Wednesday.

The Australian dollar rose against all 16 major currencies, as the Bureau of Statistics said the number of employed rose last month to 71,500, compared to an increase of 13,100 people in the previous month. We add that according to the average forecast of economists should have been an increase of 10,000 people.

Asian stocks outside Japan declined, led by material producers and developers, on concern policy makers in China will step up efforts to cool the property market and as Hong Kong banks raised mortgage rates.

Nikkei 225 12,381.19 +141.53 +1.16%

Hang Seng 22,619.18 +62.53 +0.28%

S&P/ASX 200 5,032.22 -60.18 -1.18%

Shanghai Composite 2,270.28 +6.31 +0.28%

BHP Billiton Ltd., the world’s biggest mining company, slid 2.3 percent in Sydney as metal futures fell.

Country Garden Holdings Co., the Chinese developer controlled by billionaire Yang Huiyan, declined 3.7 percent.

Japan’s Nikkei 255 Stock Average, the best performing developed-market benchmark gauge this year, rose after the lower house endorsed Prime Minister Shinzo Abe’s nominees for the Bank of Japan’s leadership.

European stocks advanced to a 4 1/2-year high as the region’s policy makers gathered for a two- day summit in Brussels, and as a report showed U.S. jobless claims unexpectedly fell.

The Stoxx Europe 600 Index (SXXP) gained 1.1 percent to 298.51 at 4:30 p.m. in London, the highest level since June 2008.

In the U.S., applications for jobless benefits dropped 10,000 to 332,000 in the week ended March 9 from a revised 342,000 the previous week, Labor Department figures showed today. Economists forecast 350,000 claims, according to the median estimates.

National benchmark indexes climbed in 15 of the 18 western European markets.

FTSE 100 6,529.41 +47.91 +0.74% CAC 40 3,871.58 +35.54 +0.93% DAX 8,058.37 +87.46 +1.10%

Generali (G) rose 9.4 percent to 13.33 euros. The insurer said fourth-quarter operating profit increased 12 percent from a year earlier to 928 million euros ($1.2 billion), boosted by the non- life insurance business.

HeidelbergCement advanced 2.9 percent to 56.16 euros, the highest price since October 2008. The German cement maker said debt declined more than expected last year as improved earnings covered dividends and repayments. Borrowings fell 700 million euros to 7 billion euros, while analysts had predicted 7.4 billion euros.

Booker Group Plc, Britain’s biggest food wholesaler, jumped 8 percent to 125.3 pence, the highest price in seven years, after the U.K. Competition Commission provisionally approved its acquisition of Makro Holding Ltd.

Major stock indexes rose, ending trading at session highs

U.S. stocks climbed, sending the Standard & Poor’s 500 Index toward a record high, as jobless claims unexpectedly dropped last week.

“Hitting a new high is going to send a signal to all of the fence-sitters that maybe it’s time to take a fresh look at equities,” Alan Gayle, senior strategist at RidgeWorth Capital Management, said over the phone. The Richmond, Virginia-based firm oversees about $48 billion. “The U.S. economy is reasserting itself in a leadership role in terms of overall economic momentum. The housing market is showing recovery, so this is all good for wealth. The decline in jobless claims suggests that the job market is continuing to improve.”

The Chicago Board Options Exchange Volatility Index, which measures the cost of using options as insurance against declines in the S&P 500, fell 2.3 percent to 11.56. The gauge is trading near the lowest level since February 2007.

First-time jobless claims fell by 10,000 to 332,000 in the week ended March 9, the fewest since mid-January, according to data today from the Labor Department in Washington. The median forecast of economists called for an increase to 350,000. The four-week average declined to a five- year low.

Most components of DOW index closed in plus. Shares of Hewlett-Packard Company (HPQ, +2.77%) advanced more than other components. Shares of Merck & Co. Inc. (MRK, -0.92%) fell more than other components

All sectors of the S&P closed in plus. Most growts showed technology sector (+0.9%).

At the close:

Dow +82.25 14,537.53 +0.57%

Nasdaq +13.81 3,258.93 +0.43%

S&P +8.53 1,563.05 +0.55%

21:30 New Zealand Business NZ PMI February 55.2 56.3

The U.S. currency was weaker after technical charts signaled recent advances may have come too fast. The 14-day relative strength index for the Dollar Index (DXY) was at 71.7 on March 13, above the 70 threshold that signals to some traders that a currency has climbed too far, too fast and is poised to reverse. The gauge is forecast to trade at 82.2 by year-end, according to the median forecast of economists surveyed by Bloomberg.

A core measure of U.S. consumer prices, which excludes more volatile food and energy costs, probably rose 2 percent for the year to February, economists forecast in a Bloomberg News poll before the Labor Department report today. Core prices picked up 0.2 percent from a month earlier, following a 0.3 percent advance in January, the survey showed.

The yen fell against the euro after Japan’s Prime Minister Shinzo Abe’s picks to run the central bank were confirmed by the upper house. The upper house of Japan’s parliament today confirmed Haruhiko Kuroda as Bank of Japan (8301) governor along with Kikuo Iwata and Hiroshi Nakaso as his deputies. The vote ushers in a new central bank leadership team amid market expectations for more monetary stimulus.

Australia’s dollar headed for the strongest weekly gain in six months before minutes on March 19 from the Reserve Bank’s latest meeting, when policy makers refrained from cutting interest rates.

EUR / USD: during the Asian session, the pair rose to $ 1.3030.

GBP / USD: during the Asian session, the pair traded in the range of $ 1.5070-00.

USD / JPY: during the Asian session, the pair traded in the range of Y95.85-25.

The EU leaders Summit continues in Brussels Friday, with budget issues and single markets talks to dominate. Cyprus is not on the official agenda and will be addressed by a special Eurogroup meeting called for later this afternoon, although it is not certain there will be any conclusive agreements. Although no time is slated, the Bank of Portugal Official Bulletin will be released Friday morning. There is Eurozone data due at 1000GMT, when the fourth quarter labour cost survey and the February final HICP data will hit the wires. At 1430GMT, European Economics and Monetary Affairs Commissioner Olli Rehn and European Council President Herman Van Rompuy are to speak at the Brussels Forum 2013. Lastly, as noted, Eurogroup finmins will meet  at around 1600GMT to discuss Cyprus.

Change % Change Last

Oil $93.00 -0.03 -0.03%

Gold $1,588.20 -2.50 -0.16%

Change % Change Last

Nikkei 225 12,381.19 +141.53 +1.16%

Hang Seng 22,619.18 +62.53 +0.28%

S&P/ASX 200 5,032.22 -60.18 -1.18%

Shanghai Composite 2,270.28 +6.31 +0.28%

CAC 40 3,871.58 +35.54 +0.93%

DAX 8,058.37 +87.46 +1.10%

Dow +82.25 14,537.53 +0.57%

Nasdaq +13.81 3,258.93 +0.43%

S&P +8.53 1,563.05 +0.55%

(pare/closed(00:00 GMT +02:00)/change, %)

EUR/USD $1,3002 +0,33%

GBP/USD $1,5083 +1,09%

USD/CHF Chf0,9470 -0,57%

USD/JPY Y96,11 +0,05%

EUR/JPY Y124,97 +0,38%

GBP/JPY Y144,96 +1,13%

AUD/USD $1,0384 +0,84%

NZD/USD $0,8215 +0,34%

08:15 Switzerland Producer & Import Prices, m/m February -0.1% +0.3%

08:15 Switzerland Producer & Import Prices, y/y February +0.8%

10:00 Eurozone EU Economic Summit March

10:00 Eurozone Harmonized CPI February -1.0% +0.4%

10:00 Eurozone Harmonized CPI, Y/Y (Finally) February +1.8% +1.8%

10:00 Eurozone Harmonized CPI ex EFAT, Y/Y February +1.3% +1.3%

12:30 U.S. NY Fed Empire State manufacturing index March 10.04 8.40

12:30 U.S. CPI, m/m February 0.0% +0.4%

12:30 U.S. CPI, Y/Y February +1.6% +1.8%

12:30 U.S. CPI excluding food and energy, m/m February +0.3% +0.2%

12:30 U.S. CPI excluding food and energy, Y/Y February +1.9% +2.0%

13:00 U.S. Total Net TIC Flows January 25.2

13:00 U.S. Net Long-term TIC Flows January 64.2 55.3

13:15 U.S. Industrial Production (MoM) February -0.1% +0.3%

13:15 U.S. Capacity Utilization February 79.1% 79.4%