We saw broad-based weakness in the momentum of US economic indicators during the month of April. The housing data was the lone bright spot. The US Federal Reserve left its asset purchase and interest rate policies unchanged. Yet, officials did alter their statement to say that they are prepared to increase or reduce the pace of asset purchases as conditions warrant. This has helped the equity markets rally even as the macro data has been showing signs of weakness. The European Central Banks (ECB) signaled its intent to tackle the problem of lacklustre lending to small business. If the European Investment Bank (EIB) steps in to provide credit guarantees, securitize these loans and transform them into high quality assets that the ECB would readily accept as collateral, it could be a game changer in Europe and positive for European equities. I still prefer US and Japanese equities though and would look to buy some protection on the S&P 500. My FX views are Short EUR/USD, Short GBP/USD and Long USD/JPY.