• The USD is trading mixed as the EUR recovery rally stalls above 1.26 and equity markets trade lower pressured by concern about the risk of a global slowdown, EUR was pressured by report that German Q1 growth slowed and business sentiment dropped in May, EUR stabilized in reaction to report that Germany's lower house has approved the EU aid package, GBP trades lower as UK monthly borrowing rose at a record pace and mortgage approvals declined, CAD trades mixed as Canada reports a faster rise in annual inflation, AUD rebounds supported by rumor of RBA smoothing operations, JPY trades lower in reaction to a statement from Japan's finance minister warning against excessive JPY rise,
• Focus turns to today's release Canada's CPI and retail sales and EU finance ministers meeting in Brussels
• BOJ leaves monetary policy unchanged, raises Japan's economic assessment, the BOJ expects the recovery to continue, Japan's finance minister says the market should set FX rates, excessive JPY rise undesirable, market turmoil may hurt the global recovery, JPY lower
• German lower house of parliament approves German participation in EU rescue package, German Q1 GDP growth slows expanding by just 0.2%, German May IFO at 101.5 compared to 101.6 last month, EU May service PMI rises to its highest level in three years, ECB's Nowotny says EUR exchange rate is no cause for concern, weak EUR helps EU exports, EUR higher
• UK April public-sector borrowing at 8.85bln, April mortgage approvals declined to 47k from 51k last month, GBP mixed
• Canada's April CPI rose by 0.3% and 1.8%y/y,core annual rate at 1.9%
• NAHB says 75% of homes in the US are now considered affordable, the best in almost two decades
• FDIC says that its list of troubled bank rose to the highest level since Q1 1992 at 775, this compares with 702 in Q4 2009 and 305 a year ago
• US equity markets set to open lower, European equities 2% lower, Nikkei closed 245 points lower

Upcoming Events

• US-Friday, no major US economic data is due for release today
• CAN-Friday, April CPI will be released expected at 0.2% compared to flat last month (already released ) and annual core rate expected at 1.8% along with retail sales expected at 0.1% compared to 0.5% last month

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