• The USD is trading lower as commodity prices and global equity markets continue to rise, Asian equity markets touch a 17 month high, platinum trades at its highest level since August of 2008, EUR/GBP cross trades higher with GBP pressured by concern about the UK deficit, the Financial Times reports of a rift between UK Chancellor Darling and PM Brown over the UK deficit, EU CPI inflation accelerated in December and German unemployment declined for six month in a row, JPY trades higher supported by exporter demand sparked by repatriation flows, Australian new home sales rose in November
• Focus turns to today's release of US factory orders, pending home sales and car sales and Canada's wholesale goods producer prices
• Reuters reports that Chinese banks have been told to control the pace of lending
• SMFG plans to raise a large amount of funds by issuing new shares, JPY higher
• German December jobless falls by 3k, unemployment unchanged at 8.1%, EU December CPI rose by 0.9% compared to 0.5% last month, ECB's Bini Smaghi calls on Asia to allow their currencies to strengthen to help ease global imbalances, EUR higher
• UK December construction PMI rose 47.1 from 47 last month, UK Chancellor Darling says the UK economy will recover from recession in 2010 and grow by 1.5%, concern about demand for UK gilts sparked selling of GBP, GBP lower
• Australian new home sales rose by 0.3% in November, AUD higher
• Greece says it will cut its budget deficit to 3% of GDP by 2012
• Federal Reserve Governor Duke expects US economy to recover at a moderate pace and confirms that interest rates would remain low for some time, USD lower
• CFTC commitment of traders report for the IMM shows that specs increased long bets on the USD last week
• US equity markets set to open higher, European equities 0.25 % higher, Nikkei closed 27 points higher

Upcoming Events

• US - Tuesday, November factory orders will be released expected 0.5% compared to 0.6% last month and 1.2% ex. autos along with November pending home sales expected 111.8 compared to 114.1 last month and December auto sales
• CAN - Tuesday, November IPPI and RMPI will be released expected 0.5% and 1.2% respectively

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