[ForexNews]

Overnight risky assets traded poorly after we started the session with weaker data out of Australia and New Zealand. Aussie retail sales were down -0.7% and New Zealand unemployment was at a 10 year high of 7.3% (consensus of 6.8%). Both currencies sold off with NZD immediately dropping 1% and then dropping further to break below 0.70. The Euro marched lower overnight, printing a new 6-month low at 1.3827 after taking out stops at 1.3850. Focus is now not only on Greek spreads but also on other European periphery spreads which widened overnight. The Bank of England met this morning keeping both rates and QE unchanged. This morning focus will be on comments following the ECB meeting. While it is unlikely there will be any change in the rhetoric regarding monetary policy, the market will likely be looking for any comments from Trichet regarding the fiscal issues in Greece, Portugal and other peripheral EU countries.