Markets take a breather ahead of heavy data...>

FOREX: Markets take a breather ahead of heavy data schedule this week

- Consolidation was the overriding theme on Monday, USD continued its reversing

trend against the majors before staging a late recovery. ECB Villeroy remarks

that said QE could end in Sep or Dec and a change in rates could come quarters

and not years after, set the tone. EURUSD squeezed $1.1998 in early NY before

fading. the 200-dma remains key resistance at $1.2021.

- GBPUSD extended its recovery off last week's pullback lows of $1.3460 to make

a brief show above $1.3600. GBPJPY traded above Y149.00 but failed to challenge

the 200-dma (Y149.26). EURGBP flirted with the 100-dma (Gbp0.8808).

- Despite the USD under pressure, NZD failed to benefit and was the biggest

faller in G10 with losses of 0.74%. AUDNZD traded above the 200-dma (NZ$1.0884)

and will be monitored on a closing basis.

- CAD held firm supported by weekend US-China optimism. Markets will focus

toward the end of the week with the NAFTA negotiation deadline on Thursday,

followed on Friday by CPI & Retail Sales.

- USDCHF touched lows of Chf0.9958, before bouncing to flirt with parity.