• The USD and JPY are trading lower as risk appetite improves in reaction to firmer equity market trade and by report that Singapore has revalued the SGD, equity markets are supported by report of better than expected earnings at Intel and J.P. Morgan Chase, EUR supported by report of a rise in industrial output with gains were limited by threat of a Moody's downgrade of the Greek debt rating, GBP supported by campaign promises to reduce the UK budget deficit, commodity currencies trade higher supported by improving risk appetite and spillover from the revaluation of the SGD, USD downside limited by report from a think tank Medley that the Fed may soon change its policy guidance
• Focus turns to today's release of US CPI, retail sales and business inventories and Bernanke's testimony before Congress
• Moody's says there is greater than 50% chance of a Greek ratings cut in the next 12 to 18 months
• Australia's April Westpac consumer confidence index falls by 1% to 116.1,AUD higher
• BOJ Governor Shirakawa says that the BOJ will maintain easy policy as the economy improves, he sees the Japanese economy improving due to a recovery in global trade, JPY lower
• EU February industrial production rose by 0.9%, German finance minister says he does not expect Greece to ask for aid, EUR lower
• The Fed's discount rate minutes state that some board members are becoming less certain about the strength and durability of the recovery and a few members argue for another 25bps hike in the discount rate
• US mortgage applications decreased last week as mortgage rates rise
• US equity markets set to open higher, European equities 1% higher, Nikkei closed 44 points higher

Upcoming Events

• US- Wednesday, March CPI will be released expected at 0.1% compared to flat last month along with March retail sales expected at 1.2% compared to 0.3% last month and February business inventories expected unchanged at 0.4%
• CAN-Wednesday, no major Canadian economic data is due for release today

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