Hopes of a quiet end to what was an insane week were dashed early today in Asia as the Euro got up off of the mat to continue fighting another day. In a session marked by incredible volatility in currencies we saw a battered and bruised EUR/USD climb from 1.2450 lows to highs near 1.2671 due to a combination of optimism over a proposed EU meeting in the coming days that may address current debt issues as well supposed short covering. It remains to be seen how look the single European currency can maintain these levels. Across the spectrum of currency pairs, the Euro showed its resilience, with EUR/CHF gaining almost 235 pips to 1.4585 highs, the EUR/GBP gaining almost 100 pips to 0.8770 highs, and the EUR/JPY moving higher to the tune of over four handles to 114.35 highs. Yen crosses were lofted despite another day of equities falling to the wayside, with the Japanese Nikkei down over 3% to 5 month lows at one point.

Rumors of RBA intervention sparked short covering in the AUD/USD, which began the Asian day near 0.8070 and ended it just off of 0.8365 highs. It is believed that the RBA was just checking rates in the FX markets, which was obviously enough to spook away sellers. AUD/JPY tapped a 75.50 apex after a starting point near 71.90, and the AUD/NZD blasted from 1.2125 to 1.2350 highs on the day. USD/JPY popped a big figure to 90.00 from 89.00.

With so much confusion as to the overall health of the global markets, traders continued to take refuge in cash, as was witnessed in XAU/USD today as long positions were abandoned, the precious metal fell from $1185.00 per ounce to $1165.50 per ounce in less than 20 minutes. The metal looked to tap $1180.00 late in the session as it pared losses.

What we saw today in Asia was a perfect example of a trader's market, more specifically, a disciplined traders market, with unprecedented moves and volatility. Look for more wicked moves and volatility ahead in both London and New York, and by all means get some rest over the weekend because we'll probably see a lot of the same come Monday. Have a nice weekend.

Upcoming Economic Data Releases (London Session) prior expected

5/21/2010

6:00

GE

GDP s.a. (QOQ)

1Q F

0.20%

0.20%

5/21/2010

6:00

GE

GDP wda (YoY)

1Q F

1.60%

1.60%

5/21/2010

6:00

GE

GDP nsa (YoY)

1Q F

1.70%

1.70%

5/21/2010

6:00

GE

Private Consumption

1Q F

-1.00%

-0.40%

5/21/2010

6:00

GE

Government Spending

1Q F

-0.60%

0.60%

5/21/2010

6:00

GE

Domestic Demand

1Q F

-2.10%

- -

5/21/2010

6:00

GE

Imports

1Q F

-1.80%

4.00%

5/21/2010

6:00

GE

Exports

1Q F

3.00%

1.50%

5/21/2010

6:00

GE

Construction Investment

1Q

-0.50%

-3.00%

5/21/2010

6:00

GE

Capital Investment

1Q F

-0.70%

0.60%

5/21/2010

7:00

FR

PMI Services

MAY P

59.2

59

5/21/2010

7:00

FR

PMI Manufacturing

MAY P

56.6

56.7

5/21/2010

7:30

GE

PMI Services

MAY A

55.2

55.4

5/21/2010

7:30

GE

PMI Manufacturing

MAY A

61.5

61.1

5/21/2010

8:00

GE

IFO - Business Climate

MAY

101.6

101.9

5/21/2010

8:00

GE

IFO - Current Assessment

MAY

99.3

100

5/21/2010

8:00

GE

IFO - Expectations

MAY

104

103.5

5/21/2010

8:00

EC

ECB Euro-Zone Current Account SA

MAR

-3.9B

- -

5/21/2010

8:00

EC

Euro-Zone Current Account nsa

MAR

-5.2B

- -

5/21/2010

8:00

EC

PMI Services

MAY A

55.6

55.6

5/21/2010

8:00

EC

PMI Manufacturing

MAY A

57.6

57.4

5/21/2010

8:00

EC

PMI Composite

MAY A

57.3

57.2

5/21/2010

8:30

UK

Total Business Investment(QoQ)

1Q P

-4.30%

-0.60%

5/21/2010

8:30

UK

Total Business Investment(YoY)

1Q P

-23.50%

-16.50%

5/21/2010

8:30

UK

Public Finances (PSNCR)

APR

25.8B

7.0B

5/21/2010

8:30

UK

Public Sector Net Borrowing

APR

23.5B

10.9B

5/21/2010

8:30

UK

M4 Money Supply (MoM)

APR P

0.20%

0.30%

5/21/2010

8:30

UK

M4 Money Supply (YoY)

APR P

3.60%

3.80%

5/21/2010

8:30

UK

Major Banks Mortgage Approvals

APR

52K

54K