JPY

New Pip, fundamentally GBP doesnt seem to be getting any major lift from any BoE hike soon, but JPY weakness seems to be here to stay. i think we will not see 134 or 133 until next week.

Ashraf

Here is a sample from MNI's FX Bullet Service:

YEN: Opened in early Europe around Y83.55 and Y120.93
-- MAS re-centering NEER upwards appeared to be the catalyst that
sparked the Asian market awake overnight, with strong Japanese fund
demand for yen emerging into the Tokyo fix adding to a move to risk
aversion as Asian equity markets moved into negative territory.
Euro-yen came under heavy sell pressure taking rate from Y121.20 to
Y120.19, the move dragging dollar-yen through its 200-dma level at
Y83.45. Break triggered stops, the added momentum triggering more
stops below Y83.30 before profit take demand emerged at Y83.25
to underpin (disparity for the low, Y83.27/20 the range). Euro-yen
recovery caught market short, the rush to cover provided the added
momentum to take the cross on to Y121.36, the move pulling dollar-yen
back to Y83.60. Dollar-yen broke back below Y83.45, extending lows to
Y83.11 while euro-yen eventually followed, breaking under Y120.19 to
Y119.70. Cross support seen at Y119.70, Y119.50/30. Dollar-yen
support Y83.00, Y82.75/70.


FX Bullets are updated every 4-5 mins and will be part of my Premium Service to be released soon

Ashraf

Japan aftershock spoils continued risk appetite in Asia; 3 Fed speakers on the docket; US earnings season kicks off with Alcoa.

Another week, another above 7 magnitude aftershock, and another retreat in equities/commodities/risk-on FX. High-flying AUD approached its late Friday US-session high around $1.0580, supported by better than expected China trade data, but has since been turned back below $1.0550. Recall a similar development taking place in the middle of last week - 7.1 magnitude event and a tsunami warning followed by brisk profit-taking. As we saw then, limited impact on infrastructure and no further damage to nuclear power plants saw investors rushing back into Japan equities and other risky assets. Any escalation in JAPAN POLITICAL THEATER could add further pressure on the Yen - over the weekend, ruling DPJ party lost some 70 seats in local assembly elections in evidence of low approval for embattled PM Kan.

THREE FED SPEAKERS on deck; Chicago Fed President EVANS will speak on risk management, while FOMC Vice Chair YELLEN will continue to defend her dovish position in the face of rising commodity inflation. The topic for this more relevant 12:15pm ET address - "Commodity Prices, the Economic Outlook, and Monetary Policy" - could not be any more appropriate. We should note that prior to the post-earthquake retreat, crude oil extended its gains above $113.30 while silver nearly breached $42/oz mark. DUDLEY to also speak. Report of more LIVE FIRE by SYRIAN SECURITY forces targeting protesters overshadows speculation Libya government is willing to discuss a ceasefire with the rebels.

See CALENDAR for more DETAILS http://www.ashraflaidi.com/ economic-calendar/

By GG - AshrafLaidi.com staff