• The USD is trading higher Tuesday, GBP trades lower pressured by report of disappointing UK retail sales and weaker than expected annual CPI, EUR weakens on worries that the EU will not agree on a Greek aid plan and speculation that the ECB will be slow to raise interest rates because European sovereign debt risk will be a drag on the EU recovery, CHF is pressured by threat of intervention, commodity currencies traded lower pressured by weaker CRB, JPY traded lower in reaction to the BOJ minutes for the March policy meeting which state that deflationary pressures may be stronger than forecast, USD traded higher despite dovish comments from the Feds Evans, Evans said that interest rates may stay at historic lows for at least another six months and accommodative policy may be needed into 2011
• Focus turns to today's release of US existing home sales
• BOJ minutes for the March policy meeting state that CPI may be weaker than forecast and growth may be stronger, JPY lower
• UK February CPI rose by 0.4% % and 3%y/y, February mortgage lending rose to 2.8bln from 2.6bln last month, February mortgage approvals rose to 35,276 and 35,154 last month, March CBI sales came in at +13 compared to +23 in February, GBP lower
• German Chancellor Merkel says IMF aid not ruled out for Greece, ECB President Trichet says that any aid to Greece should be a loan with strict terms, EUR lower
• SNB President Hildebrand says the bank is ready to act decisively against excessive CHF gains, EUR CHF cross traded at 10 year low, CHF lower
• The Feds Evans says "extended period" in the Fed policy statement means around six months, accommodative policy may be required into 2011
• China's Premier Wen says that China may run an $8bln trade deficit in March, this would be the first monthly Chinese trade deficit since April 2004
• The White House says the stimulus plan is increasing US average tax refunds by $260
• US equity markets set to open higher, European equities 0.5% higher, Nikkei closed 50 points lower

Upcoming Events

• US- Tuesday, existing home sales for February will be released expected that 5000mln compared to 5050mln last month
• CAN-Tuesday, no major Canadian economic data is due for release today

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