FX Highlights

• USD trades lower pressured by concern that the US could lose its AAA debt rating and Japanese officials indicate they are not considering intervention at this time, USD rebounds from lows supported by light profit taking
• Pimco's Gross says USD is declining because of fear the US will loose its AAA debt rating 
• Japan's Yasano says Japan is not thinking of intervention at this time, BOJ holds rate policy steady and raises assessment of the economy, says exports are bottoming, JPY lower
• BOE's Blanchflower says the UK has past the midpoint of recession, BOE's Bean says UK economic bottom not far off, recovery will be slow, UK Q1 GDP unrevised at -1.9%, OECD does not see justification for cutting  UK debt rating, GBP higher
• CBO says that unemployment will keep rising as the economy begins to grow in H2 2009 and peak above 10%, Michighan unemployment rate hit 12.9%
• Former Fed Chairman Greenspan says the financial crisis has yet to end, that US banks still need to raise large amounts of money and we still face a serious mortgage crisis and the  continued slump in housing is putting millions of borrowers at risk, he did note the remarkable  improvement in credit markets
• Treasury Secretary Geithner says the US must get its financial house in order or risk having the government crowding out productive investment, demand for yesterdays US bond auction was weak, Geithner pledges to reduce US deficit
• US equity markets set to open higher, European equities 1 % higher, Nikkei closed 38 points lower

Upcoming Events

• US- No major US economic data scheduled for release today
• CAN- Friday, March retail sales will be released expected at 0.5% compared to 0.2% last month

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