The euro was up 0.0065 to 1.5547 while the pound sterling was up 0.0037 to 1.9577, both against the U.S. dollar. The U.S. dollar was down 0.0014 to 1.0039 against the Canadian dollar. The Australian dollar was up 0.0026 to 0.9461 against the greenback.

On Tuesday, core advance retail sales are expected to increase 0.2% in April, up from a previous 0.1% increase. Economists from BBVA USA wrote that despite forecasts for an increase, the bigger picture should be relatively gloomy.

"We expect retail sales to remain unaltered in April as sales of autos declined and sales at gas stations rose in the month. Excluding autos, sales probably increased 0.1%, mostly inflated by the cost of gasoline," they said in a research note to clients.

"In fact, when adjusted for prices variations, our forecasts depict a gloomier situation than it appears by looking at nominal figures. For instance, when deflated by our CPI forecast, our estimate of total sales decline 0.3%. In 1Q08, real sales decreased by an average monthly rate of 0.1% as consumers struggled with higher commodity prices and weaker labor markets. These trends continue in the second quarter and will probably lead to a decline in total private spending."

The U.S. dollar was up 1.01 to 103.87 against the yen. The USD/JPY started rising at 8:00 p.m. EDT on Sunday from a session low of 102.57.

In the overnight, Japanese bankruptcies rose 8.3% year-over-year in April after rising 8.0% in March. In addition, according to a survey by Eco Watchers, the current conditions index for Japan declined to a reading of 35.5 in April compared to March's 36.9 level. The economic outlook indicator fell to 36.1 compared to the previous 38.2 reading.

In addition, Bank of Japan Governor Maasaki Shirakawa said that the Japanese economic outlook is uncertain, at a luncheon of the Japanese Press Club on Monday morning. Although a slowdown in the economy is expected, Japan should return to a moderate path of positive GDP, he said, citing low interest rates in the country. Shirakawa added that the BOJ was also monitoring the inflation situation and downside risks to growth, adding that the Monetary Policy Board was not committing to a predetermined monetary policy path.

All data taken at 2:32 p.m. EDT.

By Ryan Szporer, This email address is being protected from spam bots, you need Javascript enabled to view it , with contributions from Erik Kevin Franco, This email address is being protected from spam bots, you need Javascript enabled to view it , edited by Nancy Girgis, This email address is being protected from spam bots, you need Javascript enabled to view it