The Greenback would remain largely unchanged against the majors on Monday. There was a lack of economic data however news would push and pull the dollar throughout a range before ending the day mid range. Discussion about creating a European fund that could be used to rescue any Union member that is at risk of failure has massaged confidence. However, a more pressing driver of speculative interest is the Chinese government’s nullification of local government loan guarantees. Economic data today is still relatively light with only the National Federation of Independent Business’ small business optimism index for March. This indicator has received little coverage until recently; but considering small businesses account for the majority of American jobs and a considerable portion of its economic output it is starting to get more attention.

Concerns about the economic health still continues to weigh on Sterling. There were no economic releases yesterday. However, overnight there were two economic indicators that added more pressure to the currency. The RICS House Price Balance for February suffered its sharpest decline in 22 months when the annual reading slowed to a 17 percent pace of growth. On face value the BRC retail sales gauge looked positive showing a 2.2 percent growth for February. However, Stephen Robertson, director general of the BRC stated "the growth is compared with very weak figures a year ago when February saw the worst of last winter's weather and this February's performance was helped by sales postponed from January.” Released this morning is the trade balance.

Like the US dollar, the Euro ended day with little change. News has gotten out that officials are working to create a European Monetary Fund that would act much like the IMF as a lender of last resort for EU nations. This is perhaps the most practical and effective solution to the threat of a default among the group that has been entertained so far. Such a program would avoid the troubles of moral hazard, uneven financial strain on members and diminishing confidence in the union by seeking funds from outside the EU. It will take time to establish and confirm such a program, and there are very real near-term troubles. Economic data today is light but markets will continue to monitor the situation in Greece, though there appears to less immediate concern surrounding debt ridden nation.