• The USD is starting the week lower pressured by the G-7 communiqué which stated concern about excessive FX volatility but refrained from a call for measures to stop the USD decline, GBP supported by report of above forecast UK service sector PMI, EU Sentix rises to it's highest level since July 2008, Australia's jobs ads rise, AUD supported by RBA rate hike speculation as two Australian analysts see chance of an RBA rate hike at this weeks RBA policy meeting
• Focus turns to today's release of US non manufacturing ISM
• G-7 communiqué expressed concern about FX volatility
• Japan's Finance Minister Fujii says Japan will intervene if necessary, JPY mixed
• Australia's September jobs ads rise 4.4%, AUD higher
• Fed's Fischer sees slack in the system expects positive growth in Q3 and Q4, unemployment to remain high
• EU August retail sales falls 0.2%, October Sentix improves to a 15 month high at -12.6, EUR higher
• ECB's Nowotny sees no need to take action on EUR exchange level, Trichet says need to rebalance global economy does not mean the dollar should weaken versus the EUR, Weber says Asian monetary policy to loose, Bini Smaghi says China should loosen its USD peg
• UK September services PMI rises to a two-year high of 55.3 from 54.1 last month, GBP higher
• Summers say jobs are a lagging indicator expects to see GDP growth in Q3,says it will be several months before we see jobs creation, consumer would be worse off it not for the stimulus plan
• After Friday's release of worse than expected September unemployment Fed fund futures are forecasting that the Fed will hold rates at the current level through March and cut the odds that the Fed will hike rates in the spring
• US savings rate rose to its highest level in 24 years
• US equity markets set to open higher, European equities mixed, Nikkei closed 57 points lower

Upcoming Events

• US - Monday, September non-manufacturing ISM will be released expected at 50 compared to 48.4 last month
• CAN - Monday, no major economic data is due for release today