Breakfast Blog

Good Morning,
                       Early Monday has seen a huge Gap down in the precious Metals complex with Gold gapping lower by over $30 and silver by nearly $1. The rotation looks set to continue with Stocks opening higher in Europe with the Dax, Ibex and FTSE MIB all showing gains in early morning cash trading.
Over the weekend North Korea fired three short range missiles into the sea off the Eastern Coast of the Korean Peninsula, stirring tensions that had appeared to ease in the wake of a recent series of threats directed at South Korea and the U.S.  We also saw the Japanese Economy Minister Amari stating that the correction of the Strong JPY was largely completed and if it kept weakening more it would have a negative impact on people's lives. He also stated that the Stock rise had been faster then expected.
This caused an immediate strengthening of the Yen currency in early Monday Morning trade where liquidity was thin but the Market has since bounced back and we sit at 102.6 in the USDJPY pair and at 132 in the EURJPY pair.
Today is very quiet on the Data calendar so expect a range bound trading session, while traders wait for Existing Homes sales Data later in the week along with Minutes from the FOMC along with Speeches from Bernanke and Mario Draghi. We will post Currency order levels later int he session.
Good luck in the Markets.
Lowkey