Stock markets and commodities in Europe and North America have built on yesterday’s positive momentum to get a very busy week off to a strong start. Speculation continues to mount that the ECB may cut interest rates later this week and that the US Fed may keep QE3 going longer than currently anticipated, while the formation of a new government in Italy after two months of deadlock was well received. Today looks to be a very active day for trading across the Asia Pacific region. Key monthly economic reports are due throughout the day from Japan which may keep the pot boiling for JPY pairs and Japan225. Traders will likely be looking to see if the big monetary moves announced earlier this month have started to have an impact on the economy. Another big trend that has been emerging is a more aggressive flow of capital out from defensive positions, particularly in USD, back out into risk markets. Resource currencies have been leading the charge today, particularly NZD which has put on a penny today, NOK and CAD with SEK and AUD gaining at a more moderate pace. GBP and EUR also continue to gain on the greenback today. Grains have also become very active today with corn rallying 6.4%, wheat advancing 3.4% and soybeans climbing 2.0% ahead of today’s crop report. Planting has been progressing slower than usual in North America due to cool, wet spring conditions, which has started to raise concerns about this year’s harvest. Economic NewsHighlights of overnight announcements include: US personal income 0.2% vs street 0.4% US personal spending 0.2% vs street 0.0% US PCE core inflation 1.1% vs street 1.2% US pending home sales 5.8% vs street 6.1%, previous revised down tor 4.3% from 5.0% Germany consumer prices 1.2% vs street 1.4% Spain consumer prices 1.4% vs street 2.1% Upcoming significant announcements include: 9:00 am AEST South Korea industrial production street (0.7%) 9:15 am AEST Japan PMI previous 50.4 9:30 am AEST Japan unemployment rate street 4.2% 9:50 am AEST Japan industrial production street (7.2%) 9:50 am AEST Japan retail sales street 0.4% 11:30 am AEST Australia private sector credit street 3.2% 12:00 pm AEST Singapore Q1 unemployment rate previous 1.9% 12:00 pm AEST Singapore credit card billings previous $2.95B 2:00 pm AEST Japan vehicle production previous (15.1%) 3:00 pm AEST Japan housing starts street 6.0% 7:00 am BST Germany retail sales street (1.2%) 7:45 am BST France consumer spending street 0.0% 8:00 am BST Spain Q1 GDP street (2.0%) 8:55 am BST Germany unemployment change street 2K 8:55 am BST Germany unemployment rate street 6.9% 9:00 am BST Italy unemployment rate street 11.7% 9:30 am BST UK consumer credit street £0.5B 9:30 am BST UK mortgage approvals street 52.7K 10:00 am BST Eurozone consumer prices street 1.6% 10:00 am BST Eurozone unemployment rate street 12.1% 8:30 am EDT Canada GDP street 1.3% 8:30 am EDT Canada industrial prices street 0.0% 8:30 am EDT Canada raw material prices street 0.5%