Asia Session

The US Dollar struggled to hold onto earlier overnight gains that were made after some poor data and lower equities poured cold water on the risk trade. The oversold Greenback was given a boost in New York trading as optimism waned with ADP employment data showing over 500,000 jobs lost for May. The EUR/USD dropped from its lofty heights of 1.4338 to hit bottom just under 1.4110 prior to the Asia morning open. The pair entered Asia close to 1.4160 and after a high of 1.4192 and a subsequent low of 1.4136, the pair graciously exited the session right where it began. The trading this session was relatively calm ahead of the slew of central bank decisions on deck for tomorrow from the European Central Bank, Bank of England and the Bank of Canada. Although all central banks are expected the keep rates unchanged, with ECB at 1.00%, BOE at 0.50% and finally the BOC at 0.25%, traders will nonetheless be on the lookout for any signals for future moves from the banks.

The Yen lost favor in Asia, dropping against both the Dollar as well as the Euro. USD/JPY began the Asian trade day near 96.00 and broke above 96.35 before settling near 96.15 prior to the London open. EUR/JPY opened near 135.90 and after a 135.57 low and a high of 136.63 closed the session 40 pips of that aforementioned high. South of Japan, both the Aussie and Kiwi dollars tried to bounce back from yesterday's massive losses, the AUD/USD to the tune of almost 2%, but looked to stay unchanged for the trade day. RBA Governor Glenn Stevens set the stage in a speech where he stated that the possibility for further easing was a strong possibility.

Upcoming Economic Data Releases (London Session) prior expected

6/4/2009	6:45	FR	ILO Unemployment Rate	1Q	8.20%	8.60%
6/4/2009	6:45	FR	ILO Mainland Unemployment Rate	1Q	7.80%	8.00%
6/4/2009	6:45	FR	Mainland Unemp. Change (000s)	1Q	187K	- -
6/4/2009	9:00	EC	Euro-Zone Retail Sales (MoM)	APR	-0.60%	0.20%
6/4/2009	9:00	EC	Euro-Zone Retail Sales (YoY)	APR	-4.20%	-2.80%
6/4/2009		UK	New Car Registrations (YoY)	MAY	-24.00%	- -
6/4/2009	11:00	UK	BOE ANNOUNCES RATES	4-Jun	0.50%	0.50%
6/4/2009	11:45	EC	ECB Announces Interest Rates	4-Jun	1.00%	1.00%