• The USD is trading mixed gaming versus the JPY and weakening versus the high-yield currencies as stock markets rise and risk appetite improves, improvement in risk sentiment is attributed to diminished fear of sovereign debt contagion risk in Europe sparked by speculation Greece will not need an immediate bailout and improving global economic recovery outlook, the EU has given Greece a month to show it is cutting its budget deficit, GBP underperformed pressured by report of a unexpected rise in January jobless claims and the release of the MPC minutes which suggest that the recovery in the UK remains weak, AUD supported by RBA rate hike speculation as RBA minutes point to a March rate hike
• Focus turns today's release of US housing starts, building permits, import prices and industrial production and FOMC minutes
• Japan's February Tankan manufacturing index -13, Y lowers risk as appetite improves
• RBA watcher McCrann says the RBA will likely hike rates 200 bps this year starting with 25 bps hike in March, December Westpac leading index rises 6.2%, February skilled vacancies rise 5.2%
• EU December trade surplus improved to 4.4bln compared to 4bln last month, EUR lower
• UK claimant count rose by 23,500, average earnings rose by 0.8%, MPC voted 9-0 in favor of leaving rates and quantitative ease unchanged in February, GBP lower
• Citigroup's D'Antonio says that a virtuous cycle of growth is a ahead as rising incomes will create more spending and demand
• China cut its holdings of US treasuries on concern about rising US debt
• US equity markets set to open higher, European equities 1% higher, Nikkei closed 272 points higher

Upcoming Events

• US - Wednesday, January housing starts will be released expected at 580k compared to 557k last month along with January building permits expected 620k compared to 653k last month, and January import prices expected to rise by 0.9% and January industrial production expected to rise by 0.7%
• CAN - no major Canadian economic data scheduled for release today

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