• USD is trading higher supported by safe haven flows sparked by escalating tensions with North Korea, North Korea warns of possible strike against South Korea if US takes action against North Korea, restarts plutonium plant
• GBP traded at its highest level since last November supported by improving housing data and optimism that the worst of the  financial crisis is over, business economists expect US recession to  end in  the third quarter even as unemployment continues to rise, EUR was  pressured by comments from ECB officials that further interest rate cuts could not be ruled out, CHF pressured by negative IMF outlook for Swiss economy
• US two-year, ten-year bond spread trades at its best level in six years, another sign that credit market tensions are easing 
• Japan's April trade surplus widens to ¥69.0 bln as exports post modest recovery, BOJ minutes for the April 30th policy meeting expressed concern about prolonged US recession, JPY lower pressured by escalating tensions with North Korea
• Australia's Q1 construction work falls 3.7%, a  3% decline was expected, March Westpac leading index rises 0.7%, a 0.3% decline was expected, AUD lower
• UK approvals of house purchases rise to 27,685K from 26,671K last month, GBP higher
• ECB's Constancio says indicators are negative, EU growth rate will be negative in 2009, EUR lower
• IMF forecasts significant contraction for Swiss economy, CHF lower
• Financial Times reports that exploding debt is threat to America, could halve value of USD, Farber says US could see hyperinflation because of the Fed reluctance to raise interest rates
• Chrysler may emerge from bankruptcy ahead of schedule, GM waiting to see if bondholders will accept stock in exchange for bonds, GM closer to bankruptcy
• Crude oil tops $63 a barrel, Saudi Minister sees oil demand rising, CAD trades at an eight month high
• US equity markets set to open higher, European equities 1 % higher, Nikkei closed 127 points higher

Upcoming Events

• US- Wednesday, April existing home sales are due for release expected at 4.65 mln units compared to 4.57 mln units last month

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