The euro slid lower from the NY Friday afternoon high of 1.4215 to trade lower in a fairly quiet Tokyo session testing the low of 1.4135 in an otherwise 43 pip range-bound session prior to the U.S. Labor Day Holiday. The euro traded lower against the dollar and the yen after the German parliament election results yesterday where the German Chancellor Angela Merkel’s Christian Democratic Union lost (23.3%) to the Social Democrats opposition party who gained 36.1% in Mecklenburg-Western Pomorania. Merkel lost in her own eastern state and all six German state elections, showed voters resist her bid to prevent a euro-region breakup and putting more taxpayer money on the line for future bailouts. On Sept 7, the top constitutional courts will challenge 3 cases in the participation of the Greece bailout. Asian stocks fell in the continuation of the bearish sentiment of Friday’s dismal U.S. Employment numbers. Nikkei is down 152 points to 8,798.04 at noon in Tokyo (-1.71%) led by export related stocks. Honda Motor Co (-3.6%), Toyota Motor Corp (-2.2%)

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