Salient to Investors:

The dollar advanced to the highest level in 3 1/2 years versus the yen on speculation an improving labor market will compel the Fed to slow stimulus even as Japan pledges to extend easing.

Sean Callow at Westpac Banking said the greater the momentum in the US economy, the sooner the Fed will taper off QE and the higher the US yields will rise – dollar-yen is a preferred tool for dollar bulls at the moment.

Junichi Ishikawa at IG Markets Securities said with the euro risk receding and expectations for US growth improving, the yen may come under selling pressure in a risk-on trade.

Imre Speizer at Westpac Banking said the Chinese data is not great news for the Aussie dollar, and people will be asking why were imports so weak.

Read the full article at http://www.bloomberg.com/news/2013-03-07/dollar-near-3-1-2-year-high-before-jobs-japan-deficit-report.html

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