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Session Recap: Thin ranges in Asia as Eastern nears, while wondering if Cyprus banks will open tomorrow

FXstreet.com (Barcelona) - An Asian session that had a very slow open, it started picking up steam once Shanghai and Hong-Kong opened, and USD broke marginally above the 83.00 round ask line in the index, presumably on some stops being triggered given very thin markets, which took USD/JPY to session highs around 94.90, EUR/USD and AUD/USD to session lows at 1.2837 and 1.0460 respectively.

Japan PM Abe had a speech before parliament, and once again repeated on the compromise to rise inflation to 2%, while noted recent weakness in Yen had helped improve economic conditions in the nation. Local share markets moved mostly higher over all, with Australian ASX index in the leading group posting +0.9% gains. Oil held above recent three day gains above the $95 mark, while Gold remained mostly unchanged barely below the $1600 handle.

As Eastern holidays get closer, with Australia and New Zealand closed over Friday, at the same time month and fiscal end for some, markets are getting thinner, which will translate in smaller trading ranges while there's liquidity around, and wild spikes as soon as this liquidity dries and some market players want to take advantage of such low volume conditions, which help moving markets with small relative amounts.

Uninsured Laiki depositors may face 80% loss and 6 to 7 years wait for payout

Overnight press: Kuroda the talk of the town

Forex: NZD/USD rises to 1-month highs at 0.8395

Forex: EUR/USD remains above 1.2850; Bears keep the tone

Fonterra Chairman: Drought to dramatically impact supply over the season

Forex: GBP/JPY returns above 143.00

Forex: EUR/JPY capped below last week lows around 121.60

Forex: AUD/NZD posts lowest daily close in two weeks

Forex: EUR/AUD dragged lower on Oil strength; prints fresh 4-month lows

Aso: Hopes to complie fiscal 2013 budget soon

New Zealand Mar RBNZ Business Confidence falls to 34.6% vs 39.4%

Forex: AUD/USD sleeping around 1.0480

Abe: Recent currency trend is an overall plus for the Japanese economy

Forex Flash: General flows out of USD appears month end related - RBS

More on Kazumasa Iwata ’2% inflation impossible in 2 years’ comments

Forex: EUR/USD prints fresh session lows sub-1.2850 on the back of broad USD strength

Forex: USD/JPY climbs above 94.80 helped by USD buying across the board

Sources: BOJ to start open-ended asset purchases as soon as meeting next week

Forex Flash: Any further RBS cuts business-related, not household-related - NAB

According to Spiros Papadopoulos, Australia based Senior Economist at the NAB: “The economic commentary in today’s report suggests any further cuts by the RBA will be business-related, not household-related,” Spiros says, adding: “Business failure rates are above average, whereas households have 20 months’ worth of home loan repayments in offset and redraw facilities,” the analyst noted.
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Forex Flash: Time to build a short position in JPY again - RBS

“We have noted that the JPY weakness should correlate with the steepening at the long end of the yield curve (10 to 30yrs),” FX Trading Strategist at RBS Greg Gibbs notes, adding: “BoJ buying is unlikely to extend beyond 10 years, and while this may squeeze private sector demand further out the curve, if Japanese investors see genuine inflation risks (some of which are likely to relate to risk of a weaker JPY), then they will be reluctant to purchase very long term JGBs,” the analyst suggests.
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