The US dollar is trading heavier against the euro, sterling and yen, but is somewhat firmer against the dollar-bloc in mostly subdued activity. Full liquidity will not return until next Tuesday. Sterling is trading at new 4-year highs today. After the strong employment data, more participants are looking for a test on the $1.70 level and above. For its part, the euro has built a base this week near $1.3800 and appears poised to return to last week high just above $1.3900. There have been three developments from the Europe to note. First, excess liquidity appears to have risen in the Eurosystem. At 132 bln euros ... (full story)