• The USD is trading mixed ahead of today's testimony by Fed Chairman Bernanke before Congress with the commodity currencies pressured by report that China told its banks to restrict new lending to local governments, the EUR rebounded supported by report of better than expected EU industrial orders and speculation that Bernanke will confirm at today's testimony that US interest rates to remain near zero, GBP underperforms pressured by a statement from the BOE's Posen that he expects UK inflation to remain subdued and the BOE will expand quantitative ease if needed, JPY supported by safe haven flows as Asian equity markets decline
• Focus turns to today's release of US new home sales and Bernanke's testimony before Congress
• Japan's January trade surplus at ¥85.2bln, exports rose by 40.9%, imports rose by 8.6%, January corporate service price index declined by 0.4%, JPY higher
• Australia's Q4 wage price index rose by 0.6%, Q4 construction work done rose by 2.6%, AUD lower
• ECB's Gonzalez-Paramo says EUR fall not totally unjustified, he does not see a contagion from Greece if the countries abide the rules of the stability pact, EU December industrial orders rose by 0.8%, German March GFK consumer sentiment came in at 3.2 compared to 3.3 last month, EUR higher
• BOE's Posen says the BOE will keep the door open for more QE if needed, GBP mixed
• The Labor Department says that the number of mass layoffs edged up in January by 35 to 1,761, NYC to layoff 1k transit employees and San Francisco to lay off 1k employees, GM to add 1,200 jobs in Ohio
• FDIC reports a 27% jump in problem banks, CNN reports that 702 banks are at risk of failing due to bad loans in commercial real estate, bank profits rose by $915mln in Q4 2009
• Fed discount minutes show the Saint Louis and Kansas City Fed voted to increase the discount rate to 0.75%, the other members voted to leave the discount rate unchanged, the rational for the rate hike was to begin to normalize monetary policy as credit conditions improve
• First American Core Logic says 11.3mln or 25% of all mortgages are underwater
• CBO says the stimulus bill created 2.1mln jobs in the last three months of 2009, boosted the economy by 3.5% and lowered the unemployment rate by 2.1%
• US equity markets set to open lower, European equities mixed, Nikkei closed 153 points lower

Upcoming Events

• US - Wednesday, January new home sales will be released expected at 360k compared to 342k last month
• CAN - Wednesday, no major Canadian economic data is due for release today

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