Asian Session Summary

The overnight session delivered a clear yen-sell theme. USD/JPY ground higher to 159.72, printing a session high at 159.78 and closing in on the psychologically loaded 160.00 level. The move dragged every JPY cross higher — AUD/JPY led the G10 board at +0.55%, with CAD/JPY and EUR/JPY both tacking on more than 30 basis points. Sterling was the session’s weakest link after UK employment data showed a softer labour market, giving EUR/GBP room to push above 0.8550. The dollar index itself barely moved, holding just above 99.50 after recovering from a two-month low. Commodity markets were mixed: gold caught a bid at $4,456 (+0.86%), copper slipped 0.73%, and crude was split between a softer WTI (-0.32%) and a marginally firmer Brent (+0.23%).

Key Pairs for London

USD/JPY — 159.72
The pair is within 30 pips of 160.00 and hasn’t printed a meaningful pullback all session (low 159.30, high 159.78). Headlines note risk appetite fading, yet yen selling persists — that disconnect tends to resolve fast once London liquidity arrives. The 159.30 session low is the first downside reference. A clean break above 159.80 opens the path to 160.00 where option barriers and verbal intervention risk cluster. Traders will be watching for any Tokyo headlines on that level.

GBP/USD — 1.3529
Cable is the weakest G10 major today at -0.13%, weighed by UK jobs data that ING characterised as cooling the rate hike case. The session low at 1.3521 is the immediate support. The Asian high at 1.3554 marks the ceiling to reclaim for any bounce. EUR/GBP grinding above 0.8550 confirms the sterling-specific weakness. If London sellers lean in, 1.3500 is the next round-number magnet.

AUD/USD — 0.71048
The Aussie is firmer against the field, up 0.28% on the day with UOB flagging upside risk toward 0.7150. The session high at 0.71154 is the near-term target. AUD/NZD divergence is notable — AUD bid, NZD offered (-0.25%) — suggesting this is an AUD-positive flow rather than broad risk-on. London will test whether the move has legs above 0.7115 or stalls ahead of 0.7150.

EUR/USD — 1.1577
Quiet so far, a 1.8-pip range compressing between 1.1571 and 1.1589. The pair is holding near recent highs despite the DXY recovering from its two-month low. A break above the 1.1589 session high re-engages the uptrend; a slip below 1.1571 gives room back toward 1.1550. London typically resolves this kind of Asian compression early.

GBP/CHF — 1.0973
The session’s third-largest mover at -0.32%, combining sterling weakness with franc strength (USD/CHF also down 0.17%). The 1.0963 session low is the first support. This cross tends to accelerate once the London fix sets direction — watch for continuation below 1.0960 if risk sentiment stays defensive.

London Calendar Watch

The UK labour market data is already in the price — the softer read is what’s weighing on sterling this morning. For the London session itself, attention turns to any scheduled eurozone data or ECB commentary. Tuesday is typically a lighter calendar day for the eurozone, but ZEW sentiment readings and any ECB speaker slots could steer EUR crosses. With the DXY sitting right on the 99.50 recovery line, any US-side headlines from pre-market flows will also feed through to the dollar complex. The Treasury bond ETF trading at its lowest since 2004 (per overnight headlines) may keep the rates-and-FX correlation in play.

Bias Going In

EUR/USD is neutral-to-constructive — the pair is holding its range near the top of the recent move and the DXY recovery looks shallow at -0.05% on the day. GBP/USD has a softer tone, with the jobs data giving sellers a fundamental hook; rallies toward 1.3554 are likely to be faded unless a broader risk bid emerges. The AUD story is the cleanest directional read — bid against both USD and NZD, with copper weakness the main headwind. Gold’s strength and the DXY hovering just below 100 suggest the dollar hasn’t found a floor yet.

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