Market Update

G7 meeting this weekend had little effect on currencies, but the "carry trade" remains well supported as Japan and US leaves the JPY direction to free market forces.
European officials remain concerned of JPY continuing to weaken and the EUR beeing elevated in general.

Wednesday's US retail sales along with Bernanke's testimonial should be the main focus this week.
We believe that the market could be in for a surprise to the upside on US retail sales supporting T-notes and the dollar.