The Euro continues to trade near 5-year lows in Asia today as US Dollar strength is all pervasive ahead of the Federal Reserve meeting this Wednesday.

A 50 basis-point (bp) hike has been well telegraphed, and the market is now scoping a potential 75 bp lift at the June meeting

USD/JPY and EUR/USD continues to trade near multi year highs for the US Dollar. USD/JPY continues to hold above 130 after a reprieve on Friday while EUR/USD is near 1.0500.

Asian markets on Monday are digesting a torrid month end for April on Friday, after both equity and bond markets tanked in the US session.

The Nasdaq had its worst month since 2008, finishing down 13.56%. The entire US Treasury curve lifted by 10-12 basis points on Friday, pushing the prices of bonds lower.

The bond rout continued in Asia today with the Australian government 10-year note now yielding over 3.25%, a long way from 1.77% at the start of the year.

It did little to help the Australian Dollar, it’s now trading below 0.7050, after last month’s high of 0.7661. This is ahead of the RBA monetary policy meeting tomorrow where rates lift-off appears likely.

Crude oil was relatively steady in the Asian session, with WTI near US$ 104 bbl. Gold is a touch softer, trading under US$ 1985 an ounce.