• USD is opening higher as Fitch affirms US credit rating, BOE and ECB hold rate policy steady, trade awaits the ECB press conference and details of the ECB asset purchase plan, EU retail sales and UK house prices rise
• Fitch says US and UK can maintain AAA ratings, does not see sign China moving away from US bonds
• Malaysia and China may end use of USD to conduct bilateral trade, this contradicts reports yesterday that Asia sees limited alternatives to USD
• Japan's Q1 CAPEX falls 25.3%y/y, MOF flows data shows Japanese investors were net buyers of foreign stocks and bonds last week, JPY lower
• Australia's April trade balance turns to deficit of $A 91 bln, exports fall 11%, RBA Governor Stevens says there is room for further rate cuts, CAPEX spending and inflation continue to decline, AUD lower
• BOE leaves rates unchanged at 0.5%, while maintaining size of current asset purchase plan, UK May Halifax house prices rise 2.6%, new car sales fall 25% in May, GBP lower
• SNB's Hlidebrand says the global economy is nearing a turning point, sees positive signs from China, CHF lower
• EU April retail sales rise 0.2%, limited reaction to news of expanding Latvian debt crisis, EUR lower
• Bernanke says USD reserve status not at risk and warns that the US must deal with the rising deficit
• US equity markets set to open mixed, European equities mixed, Nikkei closed 72 points lower

Upcoming Events

• US- Wednesday, initial jobless claims for week ending in 5/30 will be released expected at 610K compared to 623K last week, along with Q1 productivity and costs expected at 1.1% compared to 0.8% last quarter
• CAN-Wednesday, March Ivey PMI will be released expected at 54 compared to 53.7 last month along with April building permits expected to fall 0.3% compared to 25.3% rise last month

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