USD/JPY is a clear winner as the market moves back into risk assumption mode. We’ve move back above the 85.00 level as US yields surge. The pre-data comments from Ozawa are helping as well.

The data this week is making the Federal Reserve Board look prescient. They have been saying the US is experiencing a slow-patch in a moderate recovery, not a double dip. It looks as though they may be right. Bond markets are pricing out an immediate move toward further QE, a plus for the dollar.

EUR/USD will be tough to trade as dollar strength and EUR-cross buying offset one another. EUR/CHF us rising strongly as the double dip scenario dims.