The week in Asia took off today with the Euro hitting a one month low of 1.2966 against the US Dollar as questions about the effectiveness as well as the future course of action of the ECB came into question. EUR/USD was under pressure from the onset of the session as it opened at highs of 1.3058 and dropped to the 1.2966 level before a bounce took it back above 1.3010 as ECB President Trichet hinted today in Tokyo that the next move for the ECB could be a 25 basis point cut. The Yen crosses also were sold based not only on the Trichet comments but on the lackluster day in equities, as EUR/JPY dropped from 129.57 to lows of 128.14. The selling in the crosses put the USD/JPY under severe pressure as well as the pair slid from highs of 99.41 to a low just under 98.65 in orderly trading. The Euro looks to remain in a precarious spot with concerns of the direction and modus operandi of the ECB on one hand and on the other hand the potential of knee-jerk reactions due to the 32 companies in the US with earning due this week. There are no data releases later in Europe...
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