The U.S. dollar was mostly firmer vs. the majors, but trading was quiet and ranges were fairly narrow. The euro fell to its lowest level vs. the dollar since July 6, as markets got a little nervous about the European bank stress tests. The euro's correction may not be over yet, but we feel that euro weakness will eventually reassert itself. The yen was mostly firmer while the Swiss franc softened. Yen gains were driven more by external factors than domestic ones, as most analysts agree that weekend election result was yen-negative. EM FX was mostly softer too. Only gainers on the day vs. USD were the Chilean peso (CLP), Israeli shekel (ILS), Norwegian nok (NOK), and Russian ruble (RUB), while biggest losers vs. USD were Romanian leu (RON), Korean won (KRW), Brazilian real (BRL), Mexican peso (MXN), and eur. The sterling was hurt by S&P keeping AAA rating on negative watch. Richmond Fed Reserve President Jeffrey Lacker said the Fed is "very far away" from additional easing measures, while Fed Gov. Elizabeth Duke said Fed policy is right for now. U.S. equity markets were higher, as DJIA, S&P, and Nasdaq ended up 0.2%, 0.1%, and 0.1%, respectively. European markets were higher too, with Euro Stoxx 50 up 0.2%. Asian equities are likely to open down today as Asian ADRs were lower during N. American trading Monday. Nikkei futures point to an up Japan open, but the firmer yen should hurt Japan exporters. US earnings season starts with Alcoa Monday after markets close.