· It was a whippy session for EUR/USD as markets reacted to competing headlines on Greek debt negotiations. The euro was initially dragged lower on reports that negotiations between Greece and its creditors remained deadlocked and that deposit outflows from Greek banks had accelerated. However, these losses were erased later in the session following reports that the Greek government and its creditors had started to draft a staff-level agreement that could assist Greece in avoiding a default on its upcoming IMF payment.
· A measure of future economic activity in Germany rose for a fifth consecutive month in March on widespread strength among components, signalling that the growth momentum could improve in coming months. The Conference Board Leading Economic Index rose 0.5% to 108.5 in March.
· In the currency markets, the night belonged to USD/JPY, with a continuation of the technical break and the JPY124 barrier taken out. EUR/USD was volatile as initial Greece-related headlines suggested no deal but then revealed one was being crafted.
· It was a quiet session for sovereign bonds with no major data to drive markets, with US Treasury yields were marginally lower at the long end of the curve.
· Equity markets bounced back on both sides of the Atlantic, following the sharp declines recorded on previous session. US stocks were buoyed by some improvement in technology and healthcare shares. Major US indices were up 0.7-1.5%, with the Nasdaq leading the way.
· Crude oil prices fell overnight, as US crude oil stockpiles rose despite market expectations for a decline. The API data showed crude inventories rose by 1.3m barrels last week (mkt: -1m barrels).
Gold extended its losing streak to a fourth straight session as the dollar climbed against its rivals. Dollar-priced gold futures become more expensive for buyers who use other currencies when the dollar strengthens against their home currencies. 
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