The better tone in global equity markets as crude prices moderate a bit has helped ease risk aversion concerns, to the dollar's benefit.

The FX market is watching interest rate markets and short- end yields have come off and that's because core CPI was tame. For the dollar to continue to do well, you need interest rate expectations to continue to move in its favor, and with a fair amount of tightening already priced in, that's getting harder and harder.

Global equity markets are in the midst of a pause after a very long upward march.

Further evidence of stability in the housing market and solid retail activity could prompt a rethink of MPC easing risk now priced in, allowing the euro to retreat sharply against the pound.

I would characterize March as a relatively good performance in the equity markets.

We have high crude prices. We have low inventories. We have strong demand. All of that would be a recipe for a taut market even with refineries (running at full capacity).