• The USD is trading higher on fear that the EU debt crisis is spreading and China's economy is slowing, EUR traded at a 14 month low versus the USD pressured by concern about the Greek debt crisis and speculation the ECB may take measures to help contain the crisis, CHF is trading at one month high versus the EUR supported by report that the SNB pulled its intervention bid in support of the EUR, GBP trades lower pressured by report of weaker than expected UK services PMI and UK election uncertainty, the Shanghai index declined by 4%, the decline in the Shanghai index reflects concern that the Chinese economy is slowing fueling risk aversion and selling of commodity currencies, AUD traded lower in reaction to the report that Australia's retail sales came in weaker than expected, JPY is trading mixed supported by safe haven demand as the Nikkei declines 3%, European equities are rebounding and US equities are set to open higher, this may add some stability to the Forex trade
• Focus turns to today's release of US initial jobless claims, Q1 productivity and Labor costs, Canadian building permits and Ivey PMI and the ECB press conference
• Australia's Q1 retail sales rose 0.1%,a 0.3% rise was expected, AUD lower
• UK April services PMI falls to 55.3 from 56.5,GBP lower
• German March manufacturing orders rose by 0.5% compared to flat last month, ECB leaves interest rates unchanged at 1%,EUR lower
• Canada's Finance Minister Flaherty said the Greek debt crisis is not a direct threat to Canada but he fears it will hurt other countries, Canada's small business confidence dipped to 66.4 from 69.9 last month, CAD lower
• French PM says speculative attack on the EUR will fail, EU is solid and unified in its support for Greece
• German SPD party may not vote in favor of aid for Greece
• Fitch revised Goldman's rating to negative from stable
• Norway's central bank raised rates 25bps to 2%, the Norwegian krone gains versus the EUR in reaction to the central bank rate hike
• US equity markets set to open higher, European equities 0.5% higher, Nikkei closed 361points lower

Upcoming Events

• US-Thursday, initial jobless claims for week ending 05/01 will be released expected at 440k compared to 448k last week along with Q1 Productivity expected at 2.5% compared to 6.9% last quarter and Q1 Unit Labor Costs expected at -0.7% compared to -5.9% last quarter
• CAN-Thursday, March building permits will be released expected at 1% compared to -0.5% last month along with April Ivey PMI expected at 56 compared to 57.8 last month

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