Asian session: The yen gained versus all of its 16 major counterparts

01:30 Australia CPI, q/q Quarter I 0.0% +0.8% +0.1%

01:30 Australia CPI, y/y Quarter I +3.1% +2.2% +1.6%

The yen gained versus all of its 16 major counterparts as concern political uncertainty in France and the Netherlands will hinder efforts to resolve Europe’s debt crisis boosted demand for haven assets. Japan’s currency rose against the dollar and euro before Dutch Prime Minister Mark Rutte is set to speak in parliament today, less than 24 hours after tendering his Cabinet’s resignation. Rutte will speak during a debate in the Netherlands parliament in the Hague today in a bid to break a budget deadlock over additional cuts of at least 9.5 billion euros ($12.5 billion) needed to satisfy European deficit limits. Rutte offered to quit after budget talks with Geert Wilders’s Freedom Party collapsed. The Dutch government said Queen Beatrix will consider Rutte’s offer and requested that the Cabinet handle current affairs in the meantime.

In France, presidential challenger Hollande is set to beat incumbent leader Sarkozy in a second round of balloting next month, according to four polls. Hollande’s support ranges from 53 percent to 56 percent, the polls showed. The surveys were conducted by the CSA, BVA, Ifop and Ipsos polling companies after first-round voting ended.

Australia’s currency weakened versus all of its major peers after a report showed the nation’s consumer prices rose 1.6 percent in the first quarter from a year earlier. That’s the slowest pace since 2009 and compares with a forecast for a 2.2 percent increase. Central bank Governor Glenn Stevens signaled April 3 he may end a three-month pause in interest-rate cuts as soon as next month if weaker-than-forecast growth slows inflation.

EUR/USD: during the Asian session the pair holds in a range $1.3145-$1.3160.

GBP/USD: during the Asian session the pair holds in a range $1.6105-$1.6130.

USD/JPY: during the Asian session the pair fell, updated a week’s low.

European data for Tuesday starts at 0830GMT, ECB Governing Council member Josef Bonnici is due to hold a press conference and  present annual report, in Valletta. At 1205GMT, German Finance Minister Wolfgang Schaeuble and Luxembourg Finance Minister Luc Frieden are both due to participate in a dialogue at the Luxembourg for Finance seminar, in Berlin. UK data at 0830GMT sees the public sector finances data where PSNB and PSNB-X are expected to grow to 15.9 billion and 16.5 billion.  US data starts at 1300GMT, the latest Case-Shiller Home Price Index is due. US data at 1400GMT includes Consumer Confidence, New Home Sales, the FHFA Home Price Index, the Richmond Fed Manufacturing Index and also BLS Mass Layoffs.