• The USD is trading mixed to lower pressured by improving risk sentiment as stocks start the quarter higher anticipating continued global economic recovery, optimism about the global recovery is fueled by report of improving manufacturing PMI in Europe and China, EUR drifted lower versus USD and trades at a new record low versus the CHF, Swiss manufacturing PMI rose to a four year high, cost of Greek funding continues to rise, GBP trades higher supported by report of improving UK manufacturing PMI and UK election polls which suggest the Conservatives could gain a majority in parliament, GBP trades or five week high versus the EUR, commodity currencies trade higher tracking firm equities and a rally in crude prices above $84 a barrel, JPY trades lower in reaction to stronger Nikkei, Japan's business sentiment improves but capital spending remains weak
• Focus turns to today's release of US jobless claims, ISM and auto sales
• Japans Tankan manufacturing index improves to -14, highest since September 2008, CAPEX spending at -0.4%, JPY lower
• Australia's February trade deficit widens to 1.924bln, imports rise 2%, exports fall 1%, March PMI drops 3.6 points to 50.2, March TD/MI inflation index rose by 2.5%y/y,AUD higher
• China's March PMI improved to 55.1 from 52 in February
• EU March manufacturing PMI improved to 56.6 compared to 54.2 in February, EUR/CHF drops to a record low 1.4187,EUR lower
• UK March manufacturing PMI improved to its highest level since 1994 reported at 57.2 from 56.5 in February, UK election polls show conservatives with a 6 to 9 point lead, GBP higher
• Fed's Lockhart says improving trend in employment will be key to the timing of Fed reversal of accommodative policy
• USD Libor rate at a six-month high anticipating Fed tightening
• US equity markets set to open higher, European equities 1% higher, Nikkei closed 154 points higher

Upcoming Events

• US- Thursday, initial jobless claims for week ending 03/27 will be released expected at 440k compared to 442k last month along with March ISM expected at 57 compared to 56.5 last month and March auto sales
• CAN-Thursday, no major Canadian economic data is due for release today

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