The U.S. dollar is up sharply against most major currencies after an article in the Financial Times said European and North American policy-markers were finally united in their desire to see a stronger greenback.

"Senior eurozone officials believe that the dollar-euro rate had reached levels unhelpful to both the U.S. and Europe," said the article."Policy-makers on both sides of the Atlantic want to avoid a situation in which the dollar falls too far, before snapping back as investors realise the U.S. is not heading for a depression and Europe's economy is starting to soften, too. Such abrupt currency movements could fuel instability in financial markets."

The euro declined below the 1.53 USD mark, which remains relatively flat against the Canadian dollar. Meanwhile, the pound sterling is stronger against the USD.

Seasonally adjusted Labour Force figures released by the Australian Bureau of Statistics (ABS) indicate that employment in Australia increased by 25,400 to 10,712,900 in April 2008. Full-time employment increased by 19,000 to 7,658,000 while part-time employment increased by 6,300 to 3,054,900. The unemployment rate for the nation increased by 0.1% to 4.2%. The male unemployment rate increased marginally to 4.0%, with the female unemployment rate increasing by 0.2% to 4.5%.

The National Institute of Economic Social Research (NIESR) estimated on Thursday that the UK economy's growth rate during the three months to April was at 0.4%, the same rate as seen in March. The March figure was revised downwards from 0.5%. NIESR said the results for the quarters to March and April were boosted by strong figures in February, "making it possible that slower growth could emerge in the three months ending in May."

On Thursday, the Federal Statistics Office announced that the German trade surplus fell to €16.7 billion in March from a prior reading of €16.9 billion. Economists had been expecting March's figure to remain unchanged from the previous month.

On the other hand, the current account surplus rose more than expected, reaching €17.2 billion, higher than both the expected reading of €16.2 billion and the previous month's figure of €16.1 billion. February's reading was revised up from €15.4 billion.

While German imports increased by the expected 0.8% monthly in March following February's 0.6% contraction, exports saw a decline of 0.5% during the same period. Economists had expected exports to increase 0.5% after the previous month's 0.2% decrease. February's reading was revised down from 0.0%.

Following lower-than-expected factory order figures reported on Wednesday, German industrial production fell 0.5% month-over-month in March, in line with economists' expectations. February had shown an increase of 0.2%, revised down from an initial reading of 0.4%. Year-over-year, industrial output rose 4.7%, lower than the 4.8% growth rate expected and markedly down from the previous month's 5.7% increase. February's figure was revised down from 6.1%.

In a radio interview on Thursday, Luxembourg Finance Minister Jean-Claude Juncker reiterated his dislike of excessive volatility seen in exchange rates recently, adding that FX rates should better reflect economic fundamentals. However, Juncker did acknowledge the positive effect of the high euro on energy prices. "If the euro were not there and oil prices rose as they are doing now, gasoline pump prices would be 20-30% higher," Juncker said.

On Thursday, Riksbank Deputy Governor Svante Öberg gave a speech at a The Swedish Confederation for Professional Employees seminar and said he sees upside risks to inflation in Sweden, along with downside risks to growth. "Inflation has risen and is now substantially above the Riksbank's target," Öberg noted, adding that Swedish CPI reached 3.4% in March and that inflation expectations were rising above the 2.0% target "both at two and five years ahead".

According to preliminary estimates from Statistics Sweden, industrial production fell 0.1% in March on a monthly basis following a 0.3% decline in the previous month. Economists had expected industrial output to have fallen 0.3%. February's figure was revised down from an increase of 0.3%. Year-over-year, industrial output rose 0.8%, down from the expected increase and the previous month's increase of 1.9%.

The Bank of Korea left its benchmark interest rate unchanged at 5.00% despite some speculation the slowing GDP could have pushed the bank to adopt a looser monetary policy.

UK NIESR GDP Estimates April +0.4% vs. Exp: +0.5%, Prior: +0.4%

AU Employment Change April +25.4K vs. Exp: +10.0K Revised: +18.1K Prior: +14.8K

AU Unemployment Rate April 4.2% vs. Exp: 4.1% Prior: 4.1%

AU Participation Rate April 65.4% vs. Exp: 65.2% Revised: 65.3% Prior: 65.2%

EU German Trade Balance March 16.7B vs. Exp: 16.9B Prior: 16.9B

EU German Current Account (EURO) March 17.2B vs. Exp: 16.2B Revised: 16.1B Prior: 15.4B

EU German Imports (Monthly) (SA) March +0.8% vs. Exp: +0.8% Revised: -0.6%

Prior: -0.4%

EU German Exports (Monthly) SA) March -0.5% vs. Exp: +0.5 Revised: -0.2%

Prior: 0.0

EU German Industrial Production (Annualized (NSA WDA) March +4.7% vs. Exp: +4.8% Revised: +5.7% Prior: +6.1%

EU German Industrial Production (Monthly) (SA) March -0.5% vs. Exp: -0.5% Revised: +0.2% Prior: +0.4%

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