The USD is trading mixed to slightly higher as European currencies consolidate ahead of Thursday's ECB and BOE policy meetings and the equity market rally stalls in Europe, USD rebounds versus JPY after declining to eight and half month low as Japan says it may act if FX moves turn abnormal, Japan's finance minister says JPY level consistent with acceptable market activity, prepared to intervene if moves become extreme, the German government upgrades its 2009 growth outlook, UK consumer confidence rises to its highest level since April 2008, Swiss unemployment rises to 11 year high, commodity currencies continue to rise as gold hits record high Focus turns to today’s release of US consumer credit IMF official says he see's no reason for shift of reserves away from USD Japan's finance minister says current JPY level is not abnormal, prepared to intervene if warranted, weak USD attributed to low US interest rates, best to let markets determine FX levels, IMF’s Kato says that JPY rise reflects fundamentals, JPY lower Australia's August housing finance falls 0.6%, AUD mixed consolidating at a 14 month high UK nationwide consumer confidence for September rises to its highest level since April of 2008 at 71 compared to 65 in August, GBP lower EU Q2 GDP revised -0.2%, German August manufacturing rose 1.4%, ECB’s Liikanen says EU recovery could be sluggish, EUR lower Swiss unemployment rate rises to 11 year high at 3.9%, CHF lower French Finance Minister Lagarde says talk of replacing USD in oil transactions is speculation and not on the current agenda Fed’s Hoenig says US economy recovering, does not see a double dip recession US mortgage applications rise to a four-month high Obama administration considering a 3k tax credit for hiring U.S. Treasury Secretary Geithner says US will have to save more US equity markets set to open higher, European equities mixed, Nikkei closed 108 points higher

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