• The USD is trading sharply higher as global equity markets tank on fear of contagion from the EU debt crisis, focus remains on Spanish banks and speculation that Spanish bank troubles may be a sign that the EU debt crisis is spreading, Italian/German ten year bond spread widens the most since the EU/IMF rescue announcement, GBP trades lower but outperforms in reaction to report that Q1 UK manufacturing activity rose sharply and Q1 GDP grew slightly faster than expected, commodity currencies trade lower with AUD at a 10 month low versus USD pressured by rising risk aversion and falling commodity prices, crude oil trades more than two dollars a barrel lower, JPY trades higher supported by safe haven flows, EUR/JPY trades at a nine-year low
• Focus turns to today's release US consumer confidence and Case Shiller home price index
• The IMF urges Spain to do more to overhaul its ailing banks, says consolidation has been too slow, and takeover for a small failing Spanish bank has sparked the latest fear that EU debt contagion may be spreading
• EU March industrial orders rose the fastest in 10 years up 5.2%,Italy plans to cut it budget by €26 billion over the next two years, EUR lower
• UK Q1 GDP revised to 0.3%, GBP lower
• NEC's Summers says the US economy is growing but jobs growth is lagging, US faces balancing act on the economy and budget reduction
• IMF ‘s chief economist says doubts remain about whether the EU will deliver on pledged aid to Greece
• US equity markets set to open sharply lower, European equities 2% lower, Nikkei closed 298 points lower

Upcoming Events

• US-Tuesday, May Case Shiller home price index will be released expected at 2.4 compared to 0.6 last month along with May consumer confidence expected at 59 compared to 57.9 last month
• CAN-Tuesday, no major Canadian economic data is due for release today

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