• The USD is trading mixed firming versus the EUR as Greek/German 10 year bond spread widens to a 12 year high and doubts persist over Greek aid, Greek aid talks begin today, the talks could last two weeks, GBP outperforms supported by report of a sharp drop in UK claimant count, CAD trades higher supported by BOC rate hike speculation, the AUD trades higher supported by report of a sharp rise in Australia's leading index, a rate hike in India and speculation rates will rise in Canada and Australia generate speculation that markets are retuning to normal and fuels demand for growth led currencies, JPY is trading lower pressured by improving risk appetite as global equities rise in Asia with downside limited by comments from BOJ deputy governor that Japan will eventually escape deflation
• Focus turns to today's release of Canada's wholesale trade
• Australia's February leading index rose 7.2% to the highest since 1997, March merchandise imports rose by 4%,AUD higher
• YouGuv poll has Liberals at 34%, Conservatives at 31% and Labor at 26%, the poll points to a deadlock in parliament, UK average earnings rise 2.3%, March claimant count falls by 32.9k, unemployment rises 0.2% to 8%, BOE voted unanimously to keep rate policy and asset purchases steady in April, GBP higher
• Greek/ German 10 year bond spread widens to a 12 year high, EUR lower
• SNB holdings of EUR rose to 56.4bln in March reflecting recent SNB intervention , CHF lower
• BOJ deputy governor Nishimura says that Japan will eventually escape deflation and that the economy will continue to recover, JPY lower
• IMF says rising sovereign debt levels pose biggest threat to the global economy
• WSJ reports that UK and Germany told to cut ties with Goldman
• Analysts at Citigroup say the EUR is doomed without fiscal and political unity in Europe
• US equity markets set to open mixed , European equities 1% lower, Nikkei closed 189 points higher

Upcoming Events

• US- Wednesday, no major US economic data scheduled for release today
• CAN-Wednesday, February wholesale trade will be released expected at 0.7% compared to 3% last month

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