If there is one thing that trader's have learned since March 2009 it is that the markets will move higher when the U.S. Dollar Index moves lower. This morning the U.S. Dollar Index was trading higher by 0.20 cents before the opening bell. However, once the opening bell rang at the New York Stock Exchange the U.S. Dollar Index declined sharply lower.

The GBP USD jumped overnight on renewed talk of an interest rate hike by the Bank of England. Traders reacted positively to the news that the Office for National Statistics reported a rise in consumer inflation more than double the Bank of England’s 2% target. The actual report showed that inflation rose at a 4.4% annual pace in February, up from 4% in January.

After a break to nearly 76.00 on Thursday, the USD JPY rallied overnight after the Group of Seven nations agreed to take steps to curb the Japanese currency’s rapid rise. The wave of coordinated intervention by the global financial powerhouse also known as the G-7 is an attempt to stabilize the Yen and bring it back to more respectable levels following the post-earthquake rally.

Last Friday, an 8.9 magnitude shocked the northeast coast in Japan which generated a gigantic tsunami that swept cities and killed thousands. We, at LaidTrades.com, offer our prayers to Japan especially those who are gravely affected by the disaster.