The freefall of the Euro continued into Asia today as the single European Currency hit a fresh one year low on continued concerns over Greece and the fears of contagion across the EU. The Dollar benefitted from the uncertainty that swept through the markets as traders looked for the perceived safety of the US currency and Japanese Yen. Fears have spread over a few issues concerning Greece, including the question of if the current bailout is actually enough to save the nation. Other concerns include the ability of Greece to adhere to its austerity programs in the face of country wide strike and civil unrest, as well as the risk of contagion to other EU nations who are now receiving a part of the unwanted spotlight. Those nations, most notably Spain, Portugal and Ireland are now in line to be put under a media microscope in order to look for any signs of cracking. With late session comments from the IMF stating that the debt crisis could be spreading, look for continued risk aversion and flight to safe have currencies ahead, in other words the possibility of further selling of the Euro.

The EUR/USD dropped from 1.2990 to yearly lows of 1.2935, completing a move that began near 1.3250 almost 24 hours ago. EUR/JPY spent the majority of the session below 123.00, hitting a low of 122.50 on the session. XAU/USD lost some of its recent luster and touched lows near $1166.30 in Asia while XAG/USD was sold to sub $17.60 levels early in the day. Elsewhere, the dollar continued to shine, surely because of the risk aversion due to Greece, but it shouldn't be overlooked that the US has posted some solid data over the past few weeks leading many investors to believe that the economy is resurging. AUD/USD touched a 0.9070 low, GBP/USD slipped to 1.5105, and the USD/CHF and USD/CAD topped 1.1070 and 1.0265 respectively on greenback buying.

While Japan was still out for its last day of Golden Week, the USD/JPY touched 94.90 as the yen weakened across the board. The Yen crosses were all well offered as equities continued their fall from earlier in New York, EUR/JPY dipped below 122.50, while GBP/JPY and AUD/JPY remain off of earlier lows near 143.30 and 86.20 respectively.

With Japan back in action tomorrow, expect the Nikkei to get crushed on the open as traders look to play catch up on the new over the past five days. As well, we'll have some top tier data out of Australia in Retail Sales and Trade Balance. US NFP Employment data is the Grande finale of the week on Friday in New York. In the mean time, expect Greece and the talk of contagion to dominate the airwaves as it has over the past few months.

Data Releases (London Session) prior expected

5/5/2010

7:50

FR

PMI Services

APR F

57.8

57.8

5/5/2010

7:55

GE

PMI Services

APR F

55

55

5/5/2010

8:00

EC

PMI Services

APR F

55.5

55.5

5/5/2010

8:00

EC

PMI Composite

APR F

57.3

57.3

5/5/2010

8:30

UK

PMI Construction

APR

53.1

53.2

5/5/2010

9:00

EC

Euro-Zone Retail Sales (YoY)

MAR

-1.10%

-0.50%

5/5/2010

9:00

EC

Euro-Zone Retail Sales (MoM)

MAR

-0.60%

0.10%

5/5/2010

9:00

EC

European Commission Releases Economic Forecasts

5-May

 
 

5/4/2010

6:00

GE

Retail Sales (MoM)

MAR

-0.40%

0.00%

5/4/2010

6:00

GE

Retail Sales (YoY)

MAR

-0.90%

-0.50%

5/4/2010

8:30

UK

Net Consumer Credit

MAR

0.5B

0.4B

5/4/2010

8:30

UK

Net Lending Sec. on Dwellings

MAR

1.6B

1.5B

5/4/2010

8:30

UK

Mortgage Approvals

MAR

47.1K

49.0K

5/4/2010

8:30

UK

M4 Money Supply (MoM)

MAR F

0.10%

- -

5/4/2010

8:30

UK

M4 Money Supply (YoY)

MAR F

3.50%

- -

5/4/2010

8:30

UK

PMI Manufacturing

APR

57.2

57.5

5/4/2010

9:00

EC

Euro-Zone PPI (MoM)

MAR

0.10%

0.70%

5/4/2010

9:00

EC

Euro-Zone PPI (YoY)

MAR

-0.50%

0.90%

5/4/2010

 

EC

European Commission Releases Spring Economic Forecasts

4-May