• The USD is trading mixed to lower in reaction to a statement from the Feds' Dudley that short-term interest rates may stay low for as long as two more years and improving risk appetite as Asian equity markets rally, GBP supported by statement from Moody's that UK officials are aware of what they must do to keep UK AAA credit rating and by speculation the BOE may pause its asset buying program, EUR is trading lower despite report that EU industrial output rose more than expected, concern about Greek debt outlook and selling in cross trade to GBP pressures the EUR, ECB leaves interest rates unchanged, AUD trades higher as Australian unemployment data comes in better than expected
• Focus turns to today's release of US jobless claims, retail sales and business inventories and ECB press conference
• Japan's core machinery orders fall by 11.3%, domestic corporate goods prices for December rose by 0.1%%, JPY lower
• Australia's December unemployment rate falls to 5.5%, a reading of 5.7% was expected, employment growth rises by 35.2k, AUD higher
• EU November industrial output rose by 1%, EUR lower
• Fed's Beige book says the economy continues to improve with 10 of the 12 districts reporting some improvement in economic activity, holiday spending was better than 2008 but far below 2007, labor market weak and home prices little changed
• Fed's Dudley says stronger economy needed before Fed hikes rates
• California credit rating was downgraded by S&P to A-
• Fed's Evans says with high unemployment rate Fed must support the recovery
• Realty Trac says US foreclosures may have reached a record 3mln in 2009
• PC shipments rose 24% in Q4 2009
• US equity markets set to open slightly lower, European equities 0.25% higher, Nikkei closed 163 points higher

Upcoming Events

• US - Thursday, initial jobless claims for week ending 01/09 will be released expected at 437k compared to 434k last week along with December retail sales expected at 0.5% compared to 1.3% last month and November business inventories expected unchanged at 0.2%
• CAN - Thursday, no major economic data is due for release today from Canada

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