FX Highlights

• The USD is trading lower as Reuters reports that the EU is inching forward in talks on Greece and the ECB plans to extend collateral, the EU begins a two-day summit Thursday and there is hope that the EU will agree on aid for Greece, the ECB's extension of collateral may make it easier for Greece to finance its debt, GBP traded higher supported by report of stronger than expected UK retail sales, a downward revision in UK January retail sales limits GBP gains, commodity currencies trade higher with AUD supported by hawkish RBA comments and CAD supported by BOC Governor Carney's statement that he is open to raising interest rates as soon as June 1st, JPY trades lower in reaction to BOJ comment that it will be difficult to turn CPI to a positive trend
• Focus turns to today's release of US jobless claims and the EU summit
• Japan's February corporate service price index rose by 0.1%, and declined by 1.3%y/y, BOJ says it will be difficult to exit from deflation, JPY lower
• RBA assistant Governor Lowe says rates will continue to rise toward normal, waiting for improving global outlook would be too late, AUD higher
• EU February M3 growth falls by 0.4%, German Chancellor Merkel sees potential for bilateral aid to Greece if not Greece may need IMF help , ECB President Trichet says that ECB will expand emergency collateral beyond 2010,EUR higher
• China rejects US call for quick action on currency reform
• Cost of insuring Dubai debt drops in reaction to announcement of a $9.5bln restructuring of Dubai's debt
• US 10 year bond yields rise to the highest level since July on rising supply and weak demand
• Fitch says UK budget does not change the view on UK debt
• US equity markets set to open higher, European equities 0.5% higher, Nikkei closed 14 points higher

Upcoming Events

• US- Thursday, initial jobless claims for week ending 03/20 will be released expected at 450k compared to 457k last week
• CAN-Thursday, no major Canadian economic data is due for release today

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