The U.S. dollar and yen appear to be retreating slightly against majors at the Asia-Pacific open, but not significantly, in the absence of major economic news. The yen is a relative underperformer on the back of a stronger result in Japanese June exports which slowed to an annual 27.7% growth rate, better than calls for a decline to 23.5% from 32.1% the month prior. Also making headlines were comments from U.S. Treasury Secretary Timothy Geithner telling ABC news over the weekend that allowing the measure to expire would be “the responsible thing to do”. He also said that he does not predict double-dip recession in the United States. While the comments should in theory be supportive for the U.S. dollar, given the massive amount of debt the United States has accrued, the markets are choosing to ignore the reports for now. Monday is likely to be crucial at some point following the publication of the European bank stress tests last week. Consequently equities are likely to continue driving currencies with markets digesting the idea that only 7 out of 91 large financials failed the tests. Also on tap later today is the U.S. June new home sales report.