The US dollar's gains scored yesterday in the wake of a strong upward revision in Q3 GDP to 5% have been pared slightly today in extremely thin market conditions. The euro was sold to a new 28-month low (~$1.2165) yesterday and is struggling to re-establish a foothold above $1.22. 

Encouraged by the US GDP, the backing up of US rates and a 1.25% rise in the Nikkei,  the dollar above JPY120.25 today. Recall that the greenback hit a low of nearly JPY115.50 on December 16. Yesterday the dollar stalled just above JPY120.80, which is about one yen off the multi-year high set on December 8.  

Sterling is also consolidating its loss seen yesterday amid the contrasting Q3 GDP reports. While the US was revised higher, the year-over-year pace in the UK was cut to 2.6% from 3.0%.  The dollar-bloc currencies are slightly firmer. 

Despite the weaker oil prices and S&P's warning that there is a 50% chance Russia could lose its investment grade status in the next three months, the ruble is slightly firmer day. The focus is on a modest form of capital controls (forcing 5 state-controlled companies to repatriate their fx holdings by March 1) and the government's offer of hard currency loans to Russian banks and businesses to service external debt. The contagion has spilled over to Belarus. Separately, the Chinese yuan also stabilized after falling to six-month lows. Liquidity conditions have eased as the IPOs are launched and/or tie up less funds than projected. 

The MSCI Asia-Pacific Index rose about 0.6%, helped by that advance in the Nikkei, and gains in Korea and Taiwan. China's Shanghai Composite fell 2% after losing 3% yesterday. Reports suggest light suasion by Chinese officials have helped spark the profit-taking after a 30% rally from the unexpected PBOC rate cut on November 21 through December 22. Not all European bourses are open, and those that are, are mixed.  The FTSE and CAC are about 0.25% lower, while Italy's market is up over 1%.