Not much to convey for today’s Asia session as both the UK and the US will be out for holidays later and the day was a quiet one…The Euro was once again brutalized on Friday after a downgrade of Spanish debt by Fitch from AAA to AA+, bringing it to lows near 1.2270 to end the week. The pair was able to regain some composure today after a quick dip to 1.2260; the pair came close to 1.2330 before softening ahead of the London session. The rise in the battered European currency could be attributed to end of month flows as well as short covering, and it is safe to assume that once again any rallies will be hammered back down as they have been of late.

Yen crosses were all higher with a slight surge due to a weaker yen that has been troubled by political upheaval in the Japanese parliament. The yen was sold across the board as EUR/JPY gained over a handle to 112.75, GBP/JPY marched 140 pips higher to 132.50, and AUD/JPY grew more than a big figure to 77.65 highs. USD/JPY made a rare decisive move higher to break 91.50 on the session. Polls in Japan have showed that over one half of voters want to oust current Prime Minister Hatoyama. The political discord has tarnished the luster of the safe haven currency.

Please be aware that due to the holidays in the UK and US the forex markets will experience lower liquidity coupled with the potential for higher volatility.