Asia Session

Another thriller of a session in Asia as traders watched as the Yen took off higher like a speed demon right out of the gate, as risk aversion came screaming back into the market amidst uncertainty in the global economy. Traders watched the Yen fly away to six week highs against both the Euro and the Dollar, as investors were unable to keep the faith that the global economy was emerging from dangerous straights. This view was reinforced by bad Japanese machinery order data, which last month came in at -5.4% and this time around was forecast to be a positive 2.3% but came in at a very disappointing -3.0%, it however, never threatened what looked like a truly invincible Yen. EUR/JPY began its slide right from the open in Asia as traders beat it down over a big figure to just under 131.00. GBP/JPY suffered the same fate, dropping over 150 pips to near 151.50 lows. The Yen crosses have given those investors who were short reason to smile so far this month, as EUR/JPY for instance has collapsed almost seven big figures. Don't let it get you down if you are one of the many who are asking, whatever happened to the ''green shoots'' of recovery? It might seem that at this point those who touted the ''green shoots'' were a bit premature in their euphoria, as recent losses in equities as well as optimism have clouded the horizon.

With risk appetite disappearing and basic human nature kicking in, the Dollar also saw gains amidst safe haven flows. EUR/USD continued to soften this session, hitting bottom near 1.3880 after an open close to 1.3925, but looked to limp into the London session near the 1.3900 figure. GBP/USD continued a five day slide to a one month low of 1.6060 after beginning the day almost 80 pips above. The Aussie and Kiwi dollars posted losses against both the dollar and the yen as these higher yielding assets were dumped amidst risk concerns.

The market will look to the 3 day G8 Meeting that begins later today in Italy for more possible fuel to the current debate of the US Dollar as the global reserve currency. As is usually the cryptic nature of those in attendance, don't expect them to spell out their true motivations in black or white as we have recently witnessed with China's vacillating on the topic.

Upcoming Economic Data Releases (London Session) prior expected