ForexLive North American wrap: Jeckyl and Hyde

US initial jobless claims 359K vs 350K exp Previous claims report revised to +364K from 348K US Q4 GDP unrevised at +3.0% annualized KC Fed +9 vs +13 exp Bank of Portugal sees 3.4% GDP this year versus 3.1% in previous forecast Portugal fin min says will meet 4.5% deficit target Italian yields hit 1-month highs Russia says Iran violating sanctions but attack risks crisis Japan MOF cautions on yen risk ECB's Knot: Portugal may need more aid Senate panel confirms Fed nominees Powell and Stein Ireland issues debt to pay for bank promissory notes ECB's Bonicci "not at all encouraged" by recovery Plosser sees 3% growth this year and next Plosser no Fed discussion about sterilized QE Bernanke sees reasonable chance US could return to 3% growth in long term Schaeuble: no one will be forced to leave euro Schaeuble: firewall around 800 billion euros White House says release oil reserves "on the table" Buy the US dollar in the morning, sell it in the afternoon was the theme once again in US trading. EUR/USD was on the defensive in the early going, touching 1.3251 and sticking to the lows until Europe closed and it was all up from there, edging to 1.3295. The same applied in yen trading, except the trend was even more dramatic. USD/JPY tripped stops below 82.00, touching 81.89 in the first hour of US trading but dip buyers were plentiful and the pair goes out near 82.50. Rumored M&A interest underpinned cable throughout the day. The US low of 1.5867 was re-tested at the London fix but it was all gains from there, to 1.5945. AUD/USD hit a six week low of 1.0304 but buying interest at the 1.03 psychological level and a better risk profile has led to a rebound to 1.0378.