The Euro licked its wounds and ended the Asian session slightly higher on the hopes that the EU/IMF aid package to Greece will soon be a reality. Traders pulled out of short positions with the optimistic view that a three year aid package worth as much as 120 billion Euros could be signed by possibly Sunday or Monday. Wisely, traders will remain cautious until the plan details are revealed. As well, many investors looked to square up open positions ahead of the five day holiday Golden Week holiday in Japan.

The EUR/USD was able to reach a 1.3265 high that eroded to 1.3225 as the day progressed, but the European single currency was nonetheless, higher by the close. With the UK elections just around the corner, the GBP/USD was able to maintain elevated levels just off the 1.5360 highs. Recent televised debates have helped to separate the competition with the Conservative David Cameron the current clear cut leader. EUR/GBP remained mired near 0.8630 for the majority of the session.

Encouraging home sales and private sector credit data in Australia help raise the expectations for a RBA rate hike next week, thus pushing the currency to 0.9310 against the US Dollar. Many investors feel that the RBA will be leaning towards a 0.25% hike on Tuesday to put Australia's current overnight rate at 4.50%, leading the pack of G20 nations. Australia's neighbor, New Zealand, saw its currency hit a 0.7257 high, a level not seen since early January of this year.

Despite solid equity gains in Asia, the Yen was virtually unmoved across the board as the nation of Japan begins its Golden Week holiday tomorrow which will last until Thursday. Keep in mind that on Monday, China and the UK will also be out for bank holidays. Have a nice weekend.....

Upcoming Economic Data Releases (London Session) prior expected

4/30/2010

6:45

FR

Producer Prices (MoM)

MAR

0.10%

0.60%

4/30/2010

6:45

FR

Producer Prices (YoY)

MAR

1.00%

1.90%

4/30/2010

6:45

FR

Non-Farm Payrolls (QoQ)

1Q P

-0.10%

- -

4/30/2010

8:00

SZ

SNB's Hildebrand and Raggenbass Hold Speeches in Bern

30-Apr

 
 

4/30/2010

9:00

EC

Euro-Zone CPI Estimate (YoY)

APR

1.40%

1.50%

4/30/2010

9:00

EC

Euro-Zone Unemployment Rate

MAR

10.00%

10.00%

4/30/2010

9:30

SZ

KOF Swiss Leading Indicator

APR

1.93

1.99