• The USD is trading mixed to slightly firmer as optimism about a Greek debt rescue plan fades and China reports a smaller than expected trade surplus, the trade awaits a possible statement from the EU summit on Greece later today, GBP trades lower as the BOE lowers its inflation and growth forecast, BOE Governor King said that BOE may be open to expanding quantitative ease if needed, UK manufacturing output posts improvement, weaker than expected trade data from China limits improvement in risk appetite and USD downside
• Focus turns to today's release of the Canadian trade balance, trade awaits report from the EU summit in regard to potential Greek bailout plan and Bernanke's testimony on withdrawing liquidity
• Moody's may consider downgrade of Greek debt, says that Greek debt woes won't affect greater, EU lower
• Japan's December core machinery orders rose by 20.1%, January corporate good prices rose by 0.3%, JPY higher
• Australia's February Westpac consumer confidence falls by 2.6%, December housing finance falls by 5.5%, AUD lower
• China's January trade surplus unexpectedly narrowed to 14.2bln, a reading of 19.5bln was expected, exports rose by 21%
• UK December manufacturing output rose by 0.9% and industry output rose by 0.5%, BOE inflation report says that UK inflation will fall below the 2% target in two years and growth will be slower than expected, GBP lower
• Fed's Bullard says the Fed will start discussing rate hikes in second half of 2010 as long as data holds up
• Moody's says Portugal and Spain will not need to be bailed out
• A Bloomberg survey shows that optimism about USD is at a 15 month high with USD supported by concern that sovereign debt risk in Europe will hurt the global recovery
• Zillow.com says one-fifth of US homeowners owe more than their property values are worth
• US equity markets set to open higher, European equities 1% higher, Nikkei closed 31 points higher

Upcoming Events

• US - Wednesday, December trade balance will be released expected at -36bln compared to -36.4bln last month, along with the January Treasury budget expected at -47bln compared to -63.5bln last month
• CAN - Wednesday, December trade balance will be released expected at -2bln compared to -3bln last month

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