The global tug of war between accepting and avoiding risk is likely to continue this week, keeping currency markets searching for direction but with lover levels of volatility.
In a trading week shortened by Easter holidays, the key issue facing currency investors will be wheter a recent turn toward more positive global sentiment will remain in force. The shift in sentiment cuold keep siphoning buying interest away from the safe-haven US dollar and into the euro and second tier currencies. That trend emerger from a stream of data and other events in recent weeks, with the dollar slumping against the eure and other widely traded currencies and rising appreciably against only the yen.
Data in the US and elsewhere have remained remained relatively grim, although relases like Friday's US March employment report and indicators of manufacturing activiy in the euro zone and China have exceeded expectations or at least not surprised by being worse than forecasts
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