FX: European open; The dollar was higher for choice against the majors in Asian trade Friday, although off the best levels in thin, choppy trade. Euro-dollar gave up ground from the recent rally, but still managed to bounced back above $1.2100, after touching a session low at $1.2094. Bids are noted around $1.2080/85, offering support ahead of the European session. Dollar-yen was last trading at Y91.55, having traded a session range of Y91.28 to Y91.76. The apparent risk off move seen more as a corrective move, with the euro seen more in a consolidative phase following on from Thursday's rally. Euro-dollar reported to have decent sell interest placed toward $1.2150, though stops above $1.2155 could become an early target. China inflation at 3.1% in May, from 2.8% in April, has sparked rumours that we could see tightening from China, possibly as soon as today as China out Mon/Tues. This talk has put a dampener on Aussie. South Korean FX measures to be implemented when market effect minimal, suggests may announce over the weekend. Underlying tone appears to favour risk, though expect some wariness.

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