Risk appetites reemerged in the NY session as comments from US Treasury Secretary Geithner that many banks have more capital than they need stoked a rally in shares. US equities jumped more than +2% after taking a beating yesterday and the S&P managed to close back above the 850 level to boot. Gold lost all of the overnight gains and was sitting down -$2 near 882/883 ahead of the NY close. US Treasuries were also sold and the 10-year yield spiked up 7 basis points to 2.90%.

The yen crosses participated in the rally in risk with USD/JPY jumping 55 pips towards 98.70 and just below hourly trendline resistance near 99 now. EUR/JPY meanwhile added about 90 points into the 127.70/80 area. The gains in EUR/USD were an uninspiring 15 pips to 1.2940 as comments from ECB's Papademos that financial markets ''remain vulnerable'' and that ''a number of risks lie ahead'' limited gains for the common currency.

Commodity currencies were bid in size as the rally in stocks had oil bouncing off the 43.83 low to close back above $46/bbl. AUD/USD surged more than 120 pips towards 0.7110/20 while USD/CAD pared the post-BOC gains and fell to 1.2360/70 after making a session high just over the 1.25 mark.

Earnings reports have not been constructive sine the NY stock market close, with a major US credit card company reporting a much sharper than expected  quarterly loss. This could weigh on equities and the JPY crosses now overnight. Weaker than expected trade numbers out of Japan, however, should limit the decline in the yen crosses. Stay tuned!

Upcoming Economic Data Releases (Asia Session) expected prior

  • 4/21  23:50 GMT JN  Merchnds Trade Balance Total  MAR  -Â¥9.8B  Â¥82.4B
  • 4/21  23:50 GMT JN  Adjusted Merchnds Trade Bal.  MAR  -Â¥252.2B  -Â¥43.3B
  • 4/21  23:50 GMT JN  Merchnds Trade Exports YoY  MAR  -46.6  -49.4
  • 4/21  23:50 GMT JN  Merchnds Trade Imports YoY  MAR  -37.3  -43
  • 4/22  0:30 GMT NZ  Finance Minister Speaks on Budget  22-Apr  
  • 4/22  1:30 GMT AU  Consumer Prices (QoQ)  1Q  0.50%  -0.30%
  • 4/22  1:30 GMT AU  Consumer Prices (YoY)  1Q  2.80%  3.70%
  • 4/22  5:00 GMT JN  Supermarket Sales (YoY)  MAR  - -  -5.40%