The JPY and USD are very marginally weaker from where North America left off Monday, EUR/USD up at 1.2945 from around 1.2925, while EUR/JPY is up at 127.35 from around 126.60. Risk aversion remains high though, with Asian stocks posting hefty losses.

Worries persist over the health of the global economy, there is caution ahead of earnings reports and the US bank stress test results hang over the markets like the sword of Damacles.

News on the US automaker front, Washington is providing more temporary funds for the US automakers. Will make about $500 mln available to Chrysler through end of month as it seeks to reach alliance with Fiat. Will make upto $5.0 bln available through May to help GM restructure outside of bankruptcy.

European data due today:

07:00 GMT: Swiss real estate index family homes March

07:00 GMT: Swiss M3 money supply March

08:00 GMT: Italian trade balance February

08:30 GMT: UK CPI March expected +0.2% m/m, +2.9% y/y core +1.5% y/y

08:30 GMT: UK RPI March expected -0.2% m/m, -0.5% y/y

09:00 GMT: Euro zone ZEW survey April