After a late day move in New York that had the Euro flirting with 1.2400 highs, the pair eventually lost its footing to touch lows near the 1.2312 ballpark in Asia. Perhaps the wave of short covering has waned, but the fact remains that investors are still cautious of the tenuous situation that has emerged in the Euro Zone, and a the possibility of wild volatility never seems too far out of the question. Adding to the risk aversion today in Asia was news that the US Senate passed a bill

that the US would not contribute to any IMF bailout plans that involved a nation that would not be likely to pay back the loan. Against the yen, the Euro dropped more than a full handle to 113.75 lows. It is clear that many traders are following a strategy of selling any rallies in the single European currency as the near to medium prospects of the unit appear unstable.

The fall of risk also pulled down the GBP/USD by 80 pips to 1.4410 and the GBP/JPY to 133.10 after an earlier high nearer to 134.20. While the yen strengthened in the crosses, USD/JPY remained jammed up between 92.35 and 92.65 on the day.

RBA monetary policy meeting minutes were slightly dovish, enforcing the already entrenched idea that the RBA will pause rate hikes next meeting after raising rates on 6 of the past 7 meetings. The Aussie dollar took the news on the chin, dipping below the 0.8700 big figure after being 80 pips higher at the beginning of the session.

Ahead, we have some CPI data out of the UK and the Euro Zone, but the data with the most probability of stirring up the most volatility is the German ZEW Sentiment due up at 9:00 GMT.

Upcoming Economic Data Releases (London Session) prior expected

5/18/2010

7:30

EC

EU Finance Ministers Hold Meeting in Brussels

18-May

 
 

5/18/2010

8:30

UK

CPI (MoM)

APR

0.60%

0.40%

5/18/2010

8:30

UK

CPI (YoY)

APR

3.40%

3.50%

5/18/2010

8:30

UK

Core CPI YOY

APR

3.00%

2.90%

5/18/2010

8:30

UK

Retail Price Index

APR

220.7

221.6

5/18/2010

8:30

UK

RPI (MoM)

APR

0.70%

0.50%

5/18/2010

8:30

UK

RPI (YoY)

APR

4.40%

4.90%

5/18/2010

8:30

UK

RPI Ex Mort Int.Payments (YoY)

APR

4.80%

4.90%

5/18/2010

9:00

GE

ZEW Survey (Econ. Sentiment)

MAY

53

47

5/18/2010

9:00

GE

Zew Survey (Current Situation)

MAY

-39.2

-33

5/18/2010

9:00

EC

Euro-Zone CPI (MoM)

APR

0.90%

0.40%

5/18/2010

9:00

EC

Euro-Zone CPI (YoY)

APR

1.50%

1.50%

5/18/2010

9:00

EC

Euro-Zone CPI - Core (YoY)

APR

1.00%

0.80%

5/18/2010

9:00

EC

ZEW Survey (Econ. Sentiment)

MAY

46

38

5/18/2010

9:00

EC

Euro-Zone Trade Balance

MAR

2.6B

5.0B

5/18/2010

9:00

EC

Euro-Zone Trade Balance sa

MAR

3.3B

4.4B