ASIA SUMMARY

Asia took a bit of a rest after a few volatile sessions. EUR/USD which closed the NY session strong had a minor pull back to near term support in the 1.3620 area. USD/JPY was noticeably weak as 119 continues to provide firm resistance. The JPY crosses which were strong into the NY close, also saw some profit taking early in Asia.

Dollar weakness remains the main theme of the FX market as any recent greenback strength has quickly been faded. EUR/USD is trading just under all-time highs. GBP/USD remains above 2.0000 after repeated tests below. USD/CHF is consolidating above the 1.2000 area support and could see this level in play during London.

With Golden Week (a series of holidays in Japan) coming up next week as well as the Bank of Japan rate decision and Japanese CPI on Thursday evening, we could see volatility pick up for the rest of this week. No change is expected in Japanese interest rates but the CPI could give clues on the timing of the next rate increase.

Upcoming Data Release (UK Session):

Germany: (4am EDT) IFO Business Climate expected 107.9 vs. previous 107.7. IFO Current Assessment expected 112.5 vs. previous 112.4. IFO Expectations expected 103.5 vs. previous 103.2.

UK: (4:30am EDT) Quarter over quarter GDP expected .6% vs. previous .7%.