[Pimpllus]

The USD was broadly stronger overnight as news releases supported it as the only global reserve currency. As a result, traders began taking profits in the Euro ahead of the ECB meeting tomorrow. The Euro traded down to 1.4177 overnight. Analysts are expecting the ECB to remain on hold as no real justification exists for a rate cut; however, the risk is definitely to the downside. If Trichet signals further cuts down the line, then the Euro could get punished. The Euro has come a far way in a short amount of time. The 1.4100 level has held strong and could be a good entry point. In terms of data, AUD Q1 GDP was released over night. The data came in higher than expected at +0.4% q/q. As a result of this, Australia has avoided a "technical" recession. Chances of future rate cuts are slim. In the UK, services PMI received a major bounce and came in at 51.7— much better than the 49.5 consensus. Bernanke speaks before Congress today. He will be asked to explain asset purchasing programs and provide a plan for un-doing the Fed's balance sheet expansion