• The USD is trading mixed as stronger equity markets helped boost risk sentiment and limit USD demand, the OECD raised its global growth forecast and calls on the ECB, BOE and Fed to hike rates by end of 2010, the OECD warns that US recovery may not be self-sustaining, EUR trades lower pressured by report of weak demand for today's German five year bond auction and in reaction to a decline in German consumer confidence, GBP pressured by report that UK mortgage lending slowed to its lowest level since 2001, commodity currencies rebound tracking a recovery in global equity markets and commodity prices, crude oil prices rise above $70 a barrel, Korean tensions limit USD selling pressure, JPY trades lower as equity markets rally
• Focus turns to today's release of US durable goods and new home sales
• The Wall Street Journal reports that the Fed could lower the rate on ECB USD swaps, Fed Chairman Bernanke says the Fed is not looking to provide USD swaps permanently
• Japan's April corporate service prices fall 0.4%,JPY lower
• Australia's Q1 construction work done rose by 1.9%, March Westpac leading index rose by 0.9% with the annual growth rate rising the fastest in 13 years, AUD higher
• German June GFK consumer sentiment falls to 3.5 from 3.7 last month, OECD sees no double dip recession for the EU and states that weaker EUR is a short-term positive for EU economy, EUR lower
  • UK April mortgage approvals improved to 35,739 from 35,044 last month, April mortgage lending falls to 1.825bln from 2.292bln last month, GBP lower
• Moody says the US AAA credit rating will come under pressure unless additional measures are taken to reduce US record deficits
• US Private business paychecks shrank to the smallest share of personal income in history, and government provided benefits rose to a record high during the first three months of 2010
• Fed's Bullard says the US has turned the corner on deflation, sees risk of 1970's style inflation, EU crisis not likely to cause another recession
• Three Fed regional banks wanted a discount rate hike in April
• US equity markets set to open higher, European equities 1% higher, Nikkei closed 62 points higher

Upcoming Events

• US-Wednesday, April durable goods will be released expected at 1.3% compared to -1.2% last month along with April new home sales expected at 430k compared to 411k last month
• CAN-Wednesday, no major Canadian economic data is due for release today

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