The dollar is on the move as we head into a shortened trading week. Philly Fed president Harker speaks later today. Harker has been prone to a hawkish tilt, saying earlier this month that a March rate hike should remain on the table. Investors are expecting more of the same off the heels of Loretta Mester’s comments that the economy is on track for a rate hike. Alongside Harker, we will also hear from John Williams who is a fairly neutral member, and Neel Kashkari who tends to be more cautious. Ahead, look for the Markit composite PMI reading for the US.

A composite PMI report showed that Eurozone economic growth accelerated to a 70-month high in February. In their monthly report on manufacturing and services sectors, Markit Economics’ survey of EU businesses revealed a strong picture of economic activity, led by strong gains in Germany and France. This however was not enough to bolster the euro, which was dragged lower by broad USD gains.

Japanese PMIs also beat analyst expectations in February. Output rose to 3-year highs as new export orders also increased, figures that bode well for economic activity in Japan as they are largely an export-driven economy.

The Bank of England faces off with the Treasury Committee in parliament. The BoE’s chief economist Andy Haldane emphasized that the UK economy was exposed to two-sided risks and should remain neutral so that they can move monetary policy in either direction.

EURUSD:   Euro is this morning’s clear underperformer, suppressed by a stronger USD.

GBPUSD:  Sterling weaker after the BoE’s chief economist stated that the future of the UK economy remains in flux.

AUDUSD: Aussie Dollar is a little weaker on USD strength and little reaction to the RBA minutes.

JPYUSD: Despite strong PMI figures, the yen is weaker as the USD extends gains overnight.