Asia Session

Volatile Chinese equities once again guided the currency markets today, promoting risk aversion while lower, and helping risk appetite as it pushed into positive territory.
Many traders look to China as the lead dog on the sled team as the world looks to slide out of a global recession. The Yen was again on a yo-yo as it followed the moves of the Shanghai Index, as traders sought and sold the currency depending on their risk appetites. EUR/JPY started the session near highs posted near 134.76 and subsequently fell to 134.10ish levels in conjunction with the equity markets. The pair eventually regained footing to get back to opening levels as the CSI 300 poked its nose into green territory to the tune of +1.0%. GBP/JPY saw more magnified moves, almost shedding a big figure as it hit bottom near 153.10, a monthly low. The pair pared losses, but didn't have the juice to get back above 153.90. True to form, USD/JPY broke a 94.25 high early and bottomed out near 93.90 before trudging back to 94.20 levels.
Japanese Trade Balance showed that exports dropped by 1.3% last month, but no one seemed to notice.

The European currency offered little more excitement from yesterday's tepid moves as it was mired in a less than 30 pip range for the session. EUR/USD opened near the 1.4300 figure, dove to 1.4280 lows and resurfaced just above the figure for the days highs near 1.4306. Today GBP/USD favored the dollar, as the pair erased early highs near 1.6350, and saw lows of 1.6305 for the day. Strong cross action in the pound helped accelerate moves against the greenback. EUR/GBP came close to retesting earlier highs near 0.8765. USD/CHF was stuck in neutral as it topped out a 17 pip range at 1.0625. Looking ahead, German IFO Business Climate data will dominate the London session, and US Durable Goods and New Home Sales will be the focus of traders tomorrow in NY.

Upcoming Economic Data Releases (London Session) prior expected