Asian session: The yen rose

00:01 United Kingdom RICS House Price Balance December -9% -8% 0%

06:00 Japan Prelim Machine Tool Orders, y/y December -21.3% -27.5%

The yen rose against all of its 16 major peers after comments by Japan’s economy minister stoked speculation the nation won’t try to spur further weakness in its currency. Amari, Japan’s Minister for Economic and Fiscal Policy, said an excessive decline in the yen would cause a spike in import prices. It would be a benefit for exports while having harmful effects on consumers, he told reporters in Tokyo today.

The dollar snapped a three-day loss against the euro as Asian share trimmed gains, rekindling demand for safer assets. Federal Reserve Chairman Ben S. Bernanke said in Ann Arbor, Michigan yesterday that the federal budget must be brought under control and that the U.S. is in a “relatively fragile recovery.”

President Barack Obama warned Congress not to use the nation’s debt ceiling as leverage in the U.S. budget debate. Obama said at a White House press conference markets may go “haywire” if the limit isn’t raised.

EUR/USD: during the Asian session the pair fell to $1.3345.

GBP/USD: during the Asian session, the pair traded in a range of $1.6065/95.

USD/JPY: during the Asian session the pair fell to Y88.60.

The calendar picks up pace on Tuesday, with a slew of releases on both sides of the Atlantic. Early data sees the release of the German December final HICP data and final German 2012 GDP numbers. At 0800GMT, further European inflation data is expected, with the release of Spain's December final HICP numbers. Further eurozone data is expected at 1000GMT when the EMU November trade numbers will hit the screens. UK inflation data is released at 0930GMT, when both PPI nad CPI numbers are set to cross the wires. In terms of the CPI release, it is likely inflation finished 2012 close to 3%.