The continued trials and tribulations of the Greek debt saga have once again pulled the rug out from under the Euro, as the EUR/USD collapsed to almost one year lows, just a pip off of the 1.3200 big figure. With the increasing CDS spreads for Greece along with a Moody's downgrade of the nation's sovereign debt by a notch to A3, the deterioration of the European Currency continued for a second straight week. Pushing well through the 500 basis point danger zone, the spreads between German Bund yields and Greek 10 year debt hit just over 600 basis points, causing concern over how the country's debt would be financed. A disconcerting note to this is that the bond yields of Ireland, Spain and Portugal, the other nations with questionable fiscal stability, all rose as well. Investors seem to be waiting to see when the Greek nation will actually ask for its 45 million euro aid package.

EUR/USD slipped off of a stop driven ledge near 1.3270 and didn't hit the brakes until the 1.3215 mark, with eventual lows to 1.3201. The 1.3200 level is thought to be a well protected option level with a break through that level opening the door to further Euro woes. As could be expected, risk fell with the decent of the Euro as the Greece issue pushed investors to safety. Yen crosses were softer on the day, while USD/JPY was caught in a battle between yen buying for safety and suspected Toushin (large fund), buying of foreign currencies and was trapped between 93.30 and 93.60 for the session.

The Aussie dollar took a dive from 0.9255 to 0.9205 as RBA Governor Stevens let the world know that current Australian interest rates were pretty close to where they should be. AUD/NZD was destroyed as it was dumped from 1.3020 to lows near 1.2925. Stevens's comments helped to diminish the hope of a rate hike at the next RBA meeting. Another commodity currency, the USD/CAD was firmer on the stronger dollar, pulling the pair once again above parity to 1.0030 highs on the day. XAU/USD was eerily quiet amidst the Euro moves today, trading in a range between $1138.50 and $1142.00.

A good amount of potential market moving events are on deck for the weekend with the culmination of the G20 and IMF meetings. As well, the specter of Greece continues to loom.....Have a nice weekend.

Upcoming Economic Data Releases (London Session) prior expected

4/23/2010

6:45

FR

Consumer Spending (MoM)

MAR

-1.20%

0.80%

4/23/2010

6:45

FR

Consumer Spending (YoY)

MAR

1.60%

2.10%

4/23/2010

8:00

GE

IFO - Business Climate

APR

98.1

98.7

4/23/2010

8:00

GE

IFO - Current Assessment

APR

94.4

95.3

4/23/2010

8:00

GE

IFO - Expectations

APR

101.9

102.1

4/23/2010

8:30

UK

Index of Services (3mth/3mth)

FEB

0.60%

0.60%

4/23/2010

8:30

UK

GDP (QoQ)

1Q A

0.40%

0.40%

4/23/2010

8:30

UK

GDP (YoY)

1Q A

-3.10%

-0.10%

4/23/2010

9:00

EC

Industrial New Orders SA (MoM)

FEB

-2.00%

1.00%

4/23/2010

9:00

EC

Industrial New Orders SA (YoY)

FEB

7.00%

11.20%