Slips In Asia

Spot EUR/JPY has shed a handful of pips this morning and last trades at Y130.20, after charting a (virtual) Doji yesterday. It has held Tuesday's range so far, with the early move seemingly driven by some light demand for the yen.

• BBG cited a draft document from the European Commission noting that Brussels wants to raise EUR806bn of debt over five years to fund recovery from the Covid-19 pandemic.
• Infighting among German Christian Democrats escalates ahead of September's federal election, as popular Bavarian Premier Soeder and CDU leader Laschet continue to trade barbs in their race to succeed Angela Merkel as the German Cll'r. Mssrs Soeder and Laschet suggested that they would like the nomination process to conclude by Friday.
• Meanwhile, Merkel's cabinet approved nationwide legislation on Covid-19 restrictions. It still needs to pass both houses of parliament before it can become law.
• A fall through Apr 8 low of Y129.57 would clear the way to Mar 30 low of Y129.13. Conversely, a jump above Apr 7 high & bull trigger at Y130.69 would bring the 1.236 proj of the Jun - Sep - Oct 2020 price swing at Y131.22 into play.
• Eurostat will release EZ industrial output data later today. ECB Pres Lagarde & her colleagues Schnabel, de Guindos and Panetta are set to speak.