The risk adverse environment continued as the typically hawkish Ecb member Weber suggested that stimulus packages would be needed for the rest of  the year.  As a result, the Eur/usd got pummeled taking out the week's low at 1.2725 en route to 1.2688.  In addition, both Eur/chf (1.3140) and Eur/gbp (.8183) traded sharply lower as did Eur/jpy (108.29) . Undoubtedly,  the 2010 low at 107.35.   in Eur/jpy will be in focus as we move forward. Meanwhile, Usd/jpy remained captive inside a tight 85.20-85.50 range with no key data points for the market to dig into. On the commodity front, Aud/usd (.8845)  followed the Eur lower and Usd/cad traded through the 1.05 handle behind a slightly weaker than expected Canada Cpi (.5 mom, 1.8 yoy)

With no data due out in the United States, all eyes and ears will be focused on the Us stock market.  And now with Eur/jpy threatening  the 105-100 region, market observers will begin to wonder if Boj action will occur in the Eur cross before it dose in Usd/jpy.  Either way, the large amount of uncertainty engulfing all of the financial markets is likely to persist into summer's end.