After a day that was nothing shy of a bloodbath for risk currencies and equities, the Euro was able to limp higher in Asia in highly volatile trading. After a New York session that saw the DOW drop almost 1,000 points and bounce back, EUR/JPY fall ten big figures, and the EUR/USD collapse back to levels from March of 2009 Asia was a walk in the park. That walk in the park included a 270 pip gain in the USD/JPY, a two handle gain to 1.4930 and subsequent three handle drop to 1.4600 in GBP/USD and EUR/JPY completing an almost 5 big figure move higher to 117.88. Today was a day in the FX markets only rivaled by the Bear Stearns collapse a few years ago.

The moves were based on continued fears of Greek contagion, (a word which if you are still unsure of its meaning, you should learn it; con•ta•gion,- a harmful or corrupting influence with a tendency to spread) with the added detriment of a potential fat finger in the DOW. Regardless, the bleeding was stemmed in Asia with short covering the theme of the day. The EUR/USD was able to claw back to just over 127.30 after 1.2520 lows late in New York, and USD/JPY was able to leave late NY 88.25 lows behind and eventually touch 92.75 as the day wound down. The moves higher in the crosses was nothing less than dynamic, as GBP/JPY mad an almost five handle run to 138.00, and AUD/JPY capped a three handle move up at 82.75 despite Japan's Nikkei suffering losses to the tune of 3.5%. A mid day report that there will be an impromptu phone meeting of the G7 to discuss the situation in Greece added to the boost of risk currencies.

GBP/USD was making logic defying moves in reaction to continuous exit polls for the UK parliamentary election which now looks to produce a hung parliament. The British Pound shot from 1.4720 to 1.4930 to only fall to 1.4593 with a quick turnaround to 1.4725 in early London trading. This day was by no means for the faint of heart.

Tomorrow could bring more market chaos with the combination of US NFP Employment data out at 8:30am EST, the G7 meeting regarding Greece and its ensuing comments, as well as the spectacle of continued unrest and rioting in Athens over the austerity programs. Your best bet may be to avoid the TV and internet and go out and enjoy the weekend .......

Data Releases (London Session) prior expected

5/7/2010

5:45

SZ

Unemployment Rate

APR

4.20%

4.10%

5/7/2010

5:45

SZ

Unemployment Rate (sa)

APR

4.10%

4.10%

5/7/2010

7:15

SZ

Retail Sales (Real) (YoY)

MAR

3.10%

2.80%

5/7/2010

8:30

UK

PPI Input NSA (MoM)

APR

3.60%

1.00%

5/7/2010

8:30

UK

PPI Input NSA (YoY)

APR

10.10%

13.10%

5/7/2010

8:30

UK

PPI Output n.s.a. (MoM)

APR

0.90%

0.50%

5/7/2010

8:30

UK

PPI Output n.s.a. (YoY)

APR

5.00%

4.80%

5/7/2010

8:30

UK

PPI Output Core NSA (MoM)

APR

0.70%

0.30%

5/7/2010

8:30

UK

PPI Output Core NSA (YoY)

APR

3.60%

3.50%

5/7/2010

10:00

GE

Industrial Production MoM (sa)

MAR

0.00%

1.50%