Tokyo and Hongkong out

So not much action last night apart from the Euro smashing above 1.3400!

Japanese PM Kan comments that intervention is “unavoidable” so looks like there is fear of an intervention. Will keep a close watch, considering Tokyo and Hong Kong are on a break today so looks like Asian session is going to be quiet until Europe comes in.

Euro on the other hand broke 1.3340 levels all the way up to 1.3400. Portugal had a good debt auction yesterday but yields still seem to be widening, so fundamentally Europe still has some sovereign issues to consider. But the Euro looks to be ignoring this at the moment, which I find a little worrisome as Euro could change directions at any point. So I’m a little uncomfortable buying at these high levels. I may just wait it out here until I see that change in direction, or a retracement.

Aussie traded higher last night to 0.9601 on option expires, but came down to a low of 0.9508. I think it’s going to be quiet on this front too during the Asian session.

Data Today:

-         US Initial jobless claims – 12.30pm GMT

-         US leading indicators – 2pm GMT

-         US existing home sales – 2pm GMT