Thursday 22nd April.. Euro remains weak as the outlook is clouded by the result of the talk between Greece and EU/IMF on rescue package. The meeting is expected to be concluded by May 15 with a joint text, which would allow time for Greece to roll over debt maturing next month. Sterling is firm in general as supported by buying against Euro in crosses. Some volatility is anticipated in the pound with important economic data ahead. Canadian dollar is the start performer this week, rising over 2% against Euro and Yen. However, it’s somewhat losing momentum after making 22 month high against dollar.

Yesterday, IMF raised global growth forecast for 2010 from 3.9% to 4.2% as “global recovery has evolved better than expected.” US growth forecast for 2010 was raised from 2.7% to 3.1%. Euroarea growth projection was unchanged at 1%. Japan growth projection was also raised from 1.7% to 1.9%. Emerging markets are expected to be strong with China growth expected to be at 10%, up fro 8.7%. IMF said that the global rebound is “firming up, but it is what we call a multi-speed recovery” with “very slowly decreasing unemployment.” Meanwhile, IMF also warned that failure to contain expanding public debt will post severe threat to the world economy.

Looking ahead, a number of important economic data will be released today. Eurozone PMI manufacturing and services are expected to improve slightly to 54.5 and 56.7 in April. UK retail sales are expected to grow 0.6% mom, 2.3% yoy in March. Public sector net borrowing is expected to rise to GBP 24b in March. US PPI is expected to rise 0.5% mom, 6.1% yoy in March, with core PPI up 0.1% mom, 0.9% yoy. Initial jobless claims is expected to drop back to 450k. Existing home sales is expected to rise to 5.3M annualized rate in March. BoC will also release Monetary Policy Report today.