The Euro found no respite in the Asia session as continued doubts about the feasibility of the EU rescue plan continued to haunt the European currency. Investors continued skepticism centers on the fact that the EU must endure an uncertain future of tax hikes, faltering GDP, and cuts in spending to weather the current debt crisis. The austerity programs, while good in theory, doesn't seem to translate well to the general populace who are directly affected in their wallets. The EUR/USD continued its demise from 1.3093 on Monday, touching lows just above the 1.2600 big figure. Against the yen, the Euro dropped to 116.55 lows in a risk adverse climate that helped soften the other yen crosses as well. GBP/JPY dipped under 137.50, while AUD/JPY was submerged under 82.20 for a few ticks to post fresh lows. USD/JPY once again looked like a tug-of-war as it bounced between 92.90 and 92.45.

GBP/USD fell from earlier NY 1.5000 highs after the political stage was cleared of the muddled post-election uncertainty and David Cameron became the new UK Prime Minister with Nick Clegg acting as a deputy Prime Minister. The GBP/USD touched a 1.4860 low as investors realized that with the selection of a new Prime Minister done, there is a good deal of work to be accomplished. EUR/GBP bottomed out near 0.8450 on the session.

The big winner of the day was undoubtedly gold, as XAU/USD as the precious metal posted a new record high of $1234.78 as investors pile into the safe haven metal. Traders generally look for the safety of gold to protect themselves from inflation and as protection from economic uncertainty. XAG/USD remained just off of $19.37 highs posted in NY, but still almost $2 off of highs posted in March of 2008.

Keep an eye out for Euro Zone and Euro Zone member GDP releases ahead in the London session.

Upcoming Economic Data Releases (London Session) prior expected

5/12/2010

6:00

GE

GDP s.a. (QOQ)

1Q P

0.00%

0.00%

5/12/2010

6:00

GE

GDP wda (YoY)

1Q P

-2.40%

1.20%

5/12/2010

6:00

GE

GDP nsa (YoY)

1Q P

-1.70%

1.20%

5/12/2010

6:40

EC

Austria's WIFO Reports Preliminary Quarterly Growth

12-May

 
 

5/12/2010

6:45

FR

Consumer Price Index (MoM)

APR

0.50%

0.30%

5/12/2010

6:45

FR

Consumer Price Index (YoY)

APR

1.60%

1.80%

5/12/2010

6:45

FR

CPI - EU Harmonised (MoM)

APR

0.50%

0.30%

5/12/2010

6:45

FR

CPI - EU Harmonised (YoY)

APR

1.70%

1.90%

5/12/2010

6:45

FR

CPI Ex Tobacco Index

APR

119.58

119.98

5/12/2010

6:45

FR

Current Account (EURO)

MAR

-3.6B

- -

5/12/2010

6:45

FR

Gross Domestic Product (QoQ)

1Q P

0.60%

0.30%

5/12/2010

6:45

FR

Gross Domestic Product (YoY)

1Q P

-0.30%

1.40%

5/12/2010

7:15

SZ

Producer & Import Prices (MoM)

APR

0.50%

0.40%

5/12/2010

7:15

SZ

Producer & Import Prices (YoY)

APR

0.00%

0.60%

5/12/2010

8:30

UK

Claimant Count Rate

APR

4.80%

4.80%

5/12/2010

8:30

UK

Jobless Claims Change

APR

-32.9K

-20.0K

5/12/2010

8:30

UK

Average Weekly Earnings 3M/YoY

MAR

2.30%

2.10%

5/12/2010

8:30

UK

Weekly Earnings exBonus 3M/YoY

MAR

1.70%

2.00%

5/12/2010

8:30

UK

ILO Unemployment Rate (3mths)

MAR

8.00%

8.00%

5/12/2010

9:00

EC

Euro-Zone Ind. Prod. sa (MoM)

MAR

0.90%

1.00%

5/12/2010

9:00

EC

Euro-Zone Ind. Prod. wda (YoY)

MAR

4.10%

6.50%

5/12/2010

9:00

EC

Euro-Zone GDP s.a. (QoQ)

1Q A

0.00%

0.10%

5/12/2010

9:00

EC

Euro-Zone GDP s.a. (YoY)

1Q A

-2.20%

0.40%

5/12/2010

9:30

UK

Bank of England Quarterly Inflation Report

12-May

 
 

5/12/2010

12:30

CA

New Housing Price Index MoM

MAR

0.10%

0.30%

5/12/2010

12:30

CA

Int'l Merchandise Trade

MAR

1.4B

1.6B

5/11/2010

5:45

SZ

SECO Consumer Confidence

APR

-7

-1

5/11/2010

6:00

GE

Consumer Price Index (MoM)

APR F

-0.10%

-0.10%

5/11/2010

6:00

GE

CPI - EU Harmonised (MoM)

APR F

-0.10%

-0.10%

5/11/2010

6:00

GE

CPI - EU Harmonised (YoY)

APR F

1.00%

1.00%

5/11/2010

6:00

GE

Consumer Price Index (YoY)

APR F

1.00%

1.00%

5/11/2010

6:00

GE

Wholesale Price Index (MoM)

APR

1.30%

0.90%

5/11/2010

6:00

GE

Wholesale price Index (YoY)

APR

4.30%

5.20%

5/11/2010

8:30

UK

Industrial Production (MoM)

MAR

1.00%

0.30%

5/11/2010

8:30

UK

Industrial Production (YoY)

MAR

-0.10%

0.60%

5/11/2010

8:30

UK

Manufacturing Production (MoM)

MAR

1.30%

0.40%

5/11/2010

8:30

UK

Manufacturing Production (YoY)

MAR

1.40%

1.60%