• The USD is trading mixed to lower as the EU commission backs Greek proposals to deal with its deficits and equity markets edge higher, EUR was also supported by upward revision in EU Jan services PMI, GBP firms in reaction to report of improving consumer confidence with gains limited by report of weaker than expected UK service sector PMI, commodity currencies trade higher supported by a rally in crude oil and gold with gains limited by report that Chinese mortgage rates are rising, JPY trades lower pressured by improving risk appetite, Challenger says US job cuts rose to a five-month high in January
• Focus turns to today's release of ADP employment and non manufacturing ISM
• There are reports from China that some Chinese banks have hiked mortgage rates and tightened lending conditions
• Australia's December trade deficit widened to 2.25bln, exports rose by 4% and imports rose by 6%, AUD higher
• UK January consumer confidence index rose to 73 from 70 last month, Jan services PMI dropped to 54.5 versus 56.8 last month, GBP lower
• EU officials endorse a Greek plan to cut its deficit, EU commission says Greece must be ready to take extra fiscal steps, EU December retail sales were flat, Jan services PMI revised 52.5 from 52.3,EUR higher
• Economists have raised Canada's 2010 growth forecast to 2.6% from 2.3% and expect growth of 3.2% in 2011, CAD lower
• Moody's says the US budget does not go far enough to reduce risk of a downgrade, that the economy must grow faster than forecast for the budget numbers to work, and US AAA rating outlook remains stable
• A top Republican official favors consideration of the Volcker rule which would prevent commercial banks from owning or operating a hedge fund, Volcker proposes rules to restrict speculation and proprietary trading
• January saw the first monthly job cut increase since July, according to Challenger layoffs surged due to downsizing in retail and telecommunications, January layoffs were 59% higher than December 2009
• US mortgage approvals rise in week ending January 29th
• US equity markets set to open higher, European equities 0.25% higher, Nikkei closed 33 points higher

Upcoming Events

• US - Wednesday, ADP employment for January will be released expected at -30k compared to -84k last month along with January non-manufacturing ISM expected at 51 compared to 50.1 last month
• CAN - Wednesday, no major economic data is due for release from Canada today

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