After a surge in potentially oversold stocks helped whet the pallet for risk, sending the EUR/USD to a firm entrenchment above the 1.2600 level in New York trading, the trend continued here in Asia, as EUR/USD posted a two month apex of 1.2687. The solid gains earlier in US equity markets to the tune of 3% also passed on to Asia with the Nikkei ending the day higher by about 2.75%. Risk took its cue from these signals sending the yen and dollar lower across the board as investors took advantage of conditions untarnished by bad news or weak data.

Australian employment data helped drive risk higher by hitting a proverbial home run by beating estimates in employment change, +45.9K jobs added opposed to the forecast of +15.3K jobs, and unemployment rate, which came in better at 5.1% versus the expected 5.2%. This event shot the AUD/USD from 0.8665 to 0.8747 in one quick move. The optimistic data helped to take talk of potential RBA rate cuts off of the radar and once again usher in talk of future rate hikes if the positive data continues. The Aussie dollar eventually capped out near 0.8760 to post impressive gains in the ballpark of 140 pips for the day.

The yen in the crosses received the brunt of the damage as crosses ploughed higher by a big figure at least over the span of the session. GBP/JPY added over 150 pips to 134.50 highs, EUR/JPY gained almost 125 pips to flirt with 112.00, and the AUD/JPY moved over 180 pips to highs just shy of 77.60 on the day. USD/JPY saw some firming from 87.70 to 88.45 mostly due to the yen weakness on the crosses.

Later in the London Session we have not one, but two rate decisions due from both the BOE and the ECB at 11:00GMT and 11:45GMT respectively. Although both banks are expected to keep rates unchanged at 0.50% for the BOE and 1.00% for the ECB, it will be the following commentary that holds the potential fuel for FX moves.