Pound the start in Asia, followed closely by the Euro

FXstreet.com (Bali) - The British Pound is the out-performer in the Asian session, closely followed by the Euro, Swiss Franc and Australian Dollar, while the Yen and the US Dollar continue to lose ground.

Last Friday, the improved NFP report in the U.S. saw little change in the perception towards stronger European currencies, with the US Dollar surprisingly weak, a clue suggesting the market does not buy into the headlines that QE taper is coming until most likely March.

In terms of the Aussie, after being battered aggressively, 0.90 is providing a psychological zone for a re-distribution in prices. Meanwhile, the Yen continues to be the big loser, as the conviction that more QE by the BoJ will come next year appears to be quite high, judging by the steady 'one street' moves in the currency since the breakout of USD/JPY triangle back in Nov.