NEW YORK ( BBH FX Strategy) -- The U.S. dollar is broadly firmer against the major currencies to start the week, but it remains well confined to ranges seen at the end of last week.The market lacks conviction after shrugging off the disappointing European flash purchasing managers' index reports last week. Even though Italian and Spanish bonds are firmer Monday, outperforming Germany, we detect a deterioration of conditions in Europe and are concerned about a flare-up in tensions after the market gets through the quarter-end portfolio adjustments. Follow TheStreet on Twitter and become a fan on Facebook. Today's developments include a better-than-expected German IFO business-climate-index reading (109.8 vs. consensus 109.6) and an increase in Italian consumer confidence (96.8 in March, the highest since last July, from 94.4 in February). There are also signs that Germany will relent at the finance ministers meeting at the end of the week and allow the European Financial Stability Facility and the European Stability Mechanism to run simultaneously. The increase, however, will likely be temporary and once the EFSF expires in the middle of next year the available bail-out funds will be limited again to the money set aside for the ESM.