The EUR gained overnight against the dollar, largely as a byproduct of the steep selloff in the yen. The move in the yen was against all the major crosses, and the common currency was the best performing of the G7 currencies. However, the upside for the euro remains largely limited by continued worries about European debt and as investors continue to seek relatively safe assets. Nevertheless, expectations of a rate hike as soon as in April will continue to provide significant support as we head into the weekend.

The commodity currencies were the big winners after last night's agreement between global central banks to weaken the yen. The ZAR, NZD, AUD and CAD gained by 4.68%, 4.65%, 4.25%, and 2.93% respectively. The group had been the hardest hit as speculators closed out riskier positions in the wake of last week's natural disasters in Japan and commodity prices plummeted as investors began to gauge the likely effects of the disaster on global economic growth. However, as the market begins to focus on the largest rebuilding effort since the end of WWII, the commodity currencies will likely gain traction with strong demand for their raw material exports.