Asian session: The yen fell versus most major peers

00:30 Australia Trade Balance November -0.53 -0.30 -0.12

The yen fell versus most major peers after Bank of Japan data showed progress in monetary stimulus and currency volatility plunged the most in 1 1/2 years. Japan’s monetary base, which measures the supply of money by the central bank, soared 47 percent in December from a year earlier to a record 193.5 trillion yen ($1.85 trillion), a report today showed. The BOJ switched its policy target from interest rates to the gauge in April, planning to double it to 270 trillion yen by the end of this year from December 2012.

Japan’s currency reversed an advance against the dollar yesterday that was the biggest in more than two months as BOJ policy contrasts with that of the U.S. Federal Reserve, which is expected to end its bond-buying program this year.

The euro snapped a gain before data today forecast to show the region’s inflation approached the slowest level in four years and ahead of a European Central Bank meeting on Jan. 9.

Australia’s dollar declined against most of its 16 major counterparts.

EUR / USD: during the Asian session, the pair is trading around the level of $ 1.3620

GBP / USD: during the Asian session, the pair is trading around the level of $ 1.6400

USD / JPY: during the Asian session, the pair rose to Y104.60

There is plenty of data on the calendar for traders to digest Tuesday, with the added "excitement" of Fed speakers later in the day. The European calendar kicks off early, with the release of German November retail sales and November ILO employment data. At 0745GMT, French December consumer confidence numbers are expected to cross the wires. Confidence is seen unchanged at 84. German official December unemployment data will cross the wires at 0855GMT, with economists looking for a fall of 1,000 on month, with the rate unchanged at 6.9%. Euro area data expected at 1000GMT sees the release of the November PPI data and the December flash HICP data. November PPI is expected to come in at -0.1% on the month and down 1.3% on year. December flash HICP is seen up 0.8% on year. At 1100GMT, there is a briefing in Brussels on the EMU.