• US trade deficit slips to $36 bln in January, lowest in 6 years
  • Canadian trade deficit $933 mln; largest on record
  • Canada loses 82,600 jobs in February, unemployment rate 7.7%
  • US consumer sentiment rises to 56.6 (preliminary March) from 56.3 (final February)
  • Canadian finance minister says Europe needs to do more on toxic bank assets; US “needs work” on banks; Hopes for concrete action from G20
  • UK’s Darling keeping options open on additional stimulus
  • Japan may use missile defense against North Korean “satellite”
  • Canadian PM and FM say to expect more job losses in Canada
  • S&P 500 closes up 0.8%, up nearly 11% for the week
  • Over the weekend watch the G20 meeting in London and the OPEC meeting in Vienna

EUR/USD traded in muted fashion for most of the US session, consolidating the gains made late Thursday. US equities continued to advance, albeit at a modest rate, on Friday, helping limit dips in the pair. New York range 1.2860/1.2937

USD/JPY and EUR/JPY saw a sharp round of selling at mid-morning in New York. A headline in the British press highlighting Japan’s threat to shoot down a North Korean long-range missile that is said to be being readied for a satellite launch. Both legs recovered in the afternoon with equities ending the session on a firm note. Japan’s finance minister said there were no discussions of forex rates between the US and Japan. Some see that as a sign that the US would not mind Japanese intervention. New York range 97.76/98.47, 125.95/127.28

CHF was sold heavily during the US morning by overlay managers. these accounts manage currency risk for investors and corporations and tend to take a long-term view. They are the antithesis of the hyperactive momentum trader. EUR/CHF reached 1.5400 before backing off. New York range 1.5290/1.5400

The Loonie traded on a firm note despite lousy economic data. Dealeradded to CAD shorts early in the week and got a queasy felling from dollar weakness elsewhere. USD/CAD fell to 1.2628 after all the data was out of the way and weak longs were washed out. It rebounded to close at 1.2725. New York range 1.2624/1.2842