• The USD is trading higher in reaction to weaker equity markets, declining commodity prices and weaker than expected UK Q4 GDP, equity markets were pressured by report that some Chinese banks have been ordered to hike reserve ratios, tighter monetary policy in China sparked risk aversion and demand for USD and JPY, JPY trades higher despite S&P cut of Japan's bond outlook to negative because of the nations rising debt load, Japan's Finance Ministry pledged fiscal discipline after the ratings downgrade, German IFO beats forecasts but the EUR is trading lower, EUR/JPY at a nine month low
• Focus turns to today's release of US Case Shiller home price index and consumer confidence
• UK advanced Q4 GDP rose by 0.1% and declined by 3.2% y/y, December mortgage approvals rose to 45,897 from 44,065 last month, GBP lower
• BOJ leaves monetary policy unchanged as expected, says economy improving but domestic demand remains weak, CPI will likely be higher than forecast at the October policy meeting, Japan's December corporate service price index falls 1.5%, Japan's Finance Minister Kan hopes that Japan exits from deflation in 2 to 3 years, JPY higher
• German January IFO improves to 95.8 from 94.6 last month, ECB Stark says the ECB will look on a quarterly basis for the continuation of liquidity operations, EUR lower
• National Federation of Retailers expects sales to rise by 2.5% in 2010
• Fed officials are considering adopting a new benchmark interest rate to replace the one they used for two decades
• US equity markets set to open lower, European equities 0.25% lower, Nikkei closed 178 points lower

Upcoming Events

• US - Tuesday, November Case Shiller home price index will be released expected at -5.1 compared to -7.3 last month along with January consumer confidence expected at 53.5 compared to 52.9 last month
• CAN - Tuesday, no major data is due for release in Canada today

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