The dramatic moves in the EUR/USD over the last 24 hours spanning a range from 1.2170 to 1.2348 were stopped dead in their tracks just off of highs as the Asia session passed with a minimum of activity. The single European currency was squeezed in a tight range between 1.2307 and 1.2332 as the pair failed to get through support near 1.2305/10 and lacked the bids to send it higher. Once again, short covering was considered the culprit for recent wave of Euro gains. With no real news or market data to propel markets either way, and with China out on the third and final day of the Dragon Boat Festival holiday, the moves were few and far between in range bound trading.

Risk remained steady as well today, despite Asian stocks higher across the board the yen crosses were tightly traded, with EUR/JPY barely breaking out of a 30 pip range on the session. The yen weakened against the dollar slightly as Japanese tertiary index data came in softer than anticipated at 2.1% versus 2.5%. USD/JPY had a few unsuccessful attempts at the 91.65 resistance but failed to punch through. The AUD/USD remained centered near 0.8640, just off of recent one month highs just over the 0.8660 mark. Weaker housing starts as well as leading index data had little effect on the Australian currency.

Ahead in London we have UK employment data followed up in the US by Building Permits and PPI data. FOMC Chairman Ben Bernanke will be speaking in the early hours of the Asian session tomorrow, but otherwise the data docket is clear for the day.