After yesterday's bumper sessions it was no surprise the global markets were a little of the boil last night with the majority of bulls in the market waiting for tonight's Spanish bond auction to see if European risk has really eased.  News was positive from the UK which had a surprise fall in the unemployment rate down to 8.3%, the Pound was well bid and broke through the 1.60 USD mark for the second time this month.  Helping to push the Pound up was Bank of England's Adam Posen who in the Monetary Policy Committee minutes has ended his arguments for further stimulus for the UK economy.  As he had been a major driver of recent asset repurchasing scheme the chances of a further round in May have dissipated.   With European weakness still on the table the Euro is now buying it lowest rate against the Pound since late August 2010 at 0.8187 earlier this morning.

After such a strong push to devalue its currency through February and March it was no surprise that the Bank of Japan came out after its push had stalled recently, with the Bank of Japan Deputy Governor Kiyohiko Nishimura comments putting further stimulus in play.  The comments helped the US and Australian dollar hit the 81.5 and 84.5 Yen respectively early in the European session.  Yen traders will have their eyes firmly fixed on next week's Bank of Japan meeting, with further comments expected in the lead in.

In Switzerland the Government ratified interim Chairman Thomas Jordan move to full time.  Jordan was quick to state that I stand for the continuity of the SNB monetary policy.  With the ceiling on the Euro/Franc expected to remain in the near term at 1.20.

With European and US indices weaker overnight after a lack of data to drive trade in both regions the Australian dollar also struggled overnight.   At the close of the US session this morning it sat at 1.0359 USD and we are not expecting too much bounce today with most markets waiting to get through tonight's Spanish 10-year bond auction.