It has been an extremely choppy week in FX, but one seeing some potentially constructive moves in the making, but lacking in momentum as yet. USD/JPY was much the focus in the previous week, but the BoJ and MoF will have been comforted by the tentative gains seen from the mid 107.00s, to the high 109.00s, with 110.00 proving elusive as yet. This was largely down to the softer than expected US inflation numbers, which put a dent in the recovery in the USD index; Friday’s weak industrial production stats adding to the heavy tone. EUR/USD had finally managed to break support ahead of 1.1300 to test under 1.1250, but we are back above this figure level heading into the London close. The CAD was in focus for much of Friday, with the Doha talks on the weekend finally showing the nerves in the oil market – WTI testing $40.0 late in the day and the spot rate pressing offers above 1.2900 as a result. Unless we get some notable agreement on production levels, oil prices are set to head lower and CAD through 1.3000. Elsewhere, it was a good week for the AUD, trading through .7700 again and taking out the late March highs. Australian jobs were better than expected, but largely part time, but the positive tone has held well throughout. GBP is now mid range, but we are seeing a better bid tone developing with cable threatening 1.4200+ again. The big event next week is the ECB meeting on Thursday, though we will start off dissecting the results from the meeting between OPEC and non OPEC members on the weekend. Other noteworthy data releases include UK jobs, Japanese trade and the EU/German ZEW. US releases are thin on the ground.