• The USD is trading mixed to lower pressured by speculation China will soon allow the Yuan to rise and in reaction to improving UK economic data, GBP was supported by an upward revision in UK GDP and better than expected housing data, EUR gains limited by rumors that France may lose its AAA credit rating and weak reception for yesterday's Greek bond auction, AUD supported by RBA rate hike speculation, JPY trades lower as stocks rise
• Focus turns to today's release of US Case Shiller HPI and consumer confidence and Canada's industrial producer prices
• PBOC's advisor Bin says that China should let the Yuan gradually rise, China's trade Minister says Yuan is not the cause of US China trade gap, US Chinese tensions ease in reaction to comments from President Obama that he wants to work with China to create balanced growth
• Japan's February industrial production declines by 0.9%, February unemployment unchanged at 4.9%, February household spending falls by 1.6%,JPY lower
• UK final Q4 GDP revised up 0.1% to 0.4%, Q4 current account gap narrows to 1.684bln from 5.912bln, UK February house prices rose by 0.7% in February according to Nationwide Building Society, GBP higher
• RBA watcher McCrann says it would be extraordinary if the RBA did not hike rates next week,AUD higher
• EUR erased early gains pressured by rumors that France may lose its AAA credit rating and in reaction to widening of Greek bond spreads, EUR lower
• Three month USD Libor rate hits a six month high in anticipation of a Fed policy shift and US debt worries, EUR Libor rates held at a record low in anticipation of fresh liquidity from the ECB Wednesday
• World Gold Council says China's demand for gold may double in the next decade on rising jewelry and investment demand
• Feds Evans says he is very worried about US unemployment, US inflationary risks are minimal and US monetary policy is appropriate, Evans also said that monetary policy is not effective in pricking bubbles
• US equity markets set to open higher, European equities mixed, Nikkei closed 110 points higher

Upcoming Events

• US- Tuesday, January Case Shiller Home Price Index will be released expected at -0.8% compared to-3.1% last month along with March consumer confidence expected at 50 compared to 46 last month
• CAN-Tuesday, February IPPI and RMPI will be released expected at 0.1% and - 1% respectively

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