MARKET COMMENTARY: Currency Tensions Intensify Ahead of G7

 Portugal, Greece and Spain remain firmly in the spotlight but it may not be long before the light broadens to include UK, US and many other countries facing similar difficulties on the fiscal front
 In Portugal, parliament began to vote on a bill on financial transfers to the regions, which could damage the ability of the government to reduce the deficit
 In Greece tax collectors have started a 48-hour strike as social unrest worsens
 European officials pour cold water on the idea that the whole EMU Project could unravel bond markets are not taking any chances whilst the EUR looks destined to languish at ever weaker levels until there is a semblance of calm
 The G7 meeting in Canada will move rapidly into focus this weekend, with a joint press conference expected on Saturday
 US pressure on China to strengthen the CNY has increased
 There is growing speculation that the upcoming US Treasury report in April will label China as a currency manipulator which could result in tensions ratcheting up to a higher level

These are the salient points kindly contributed by Mitul Kotecha, Managing Director & Head of Global Currency Strategy at Calyon. To view the full discussion, please click here to visit the original post on his website The Econometer