|by Anna Coulling|
Master The Markets
Previous Currency Trading Session Overview
The Dollar continued to rally after the New York close last night,
with EUR/USD falling a full 100 points from 1.4010 to 1.3910 in Friday
Asia morning trading. The move is keeping EUR/USD in this week's well
established range between 1.3850 and 1.4050. Cable outperformed the
Euro but was also trading lower over the course of this morning's
trading session. GBP/USD is currently trading at 1.6280, down from the
week's high at 1.6375 in yesterday's afternoon.
USD/JPY volatility has slowed over the past 36 hour. The pair
remains in bearish territory in a fairly tight range of 92.50 - 93.10,
with strong resistance capping the dollar at 93.60. Meanwhile the Yen
crosses are turning south once more after having recovered a further 2%
in late New York. EUR/JPY and GBP/JPY both fell 100 pips each this
morning, EUR/JPY from 129.00 to 128.00 and GBP/JPY is down at 151.
The Aussie Dollar continues to under-perform its European
counterparts with yet another dive lower. Currently at 0.7770 it is
just 40 pips above this week's low.
Currency Market Expectation
May Trade Balance Figures for the US are scheduled today at 12.30
GMT, and may well turn out to be the most significant data release this
week. Market expectations are for a slightly higher trade deficit of
$30Bln, from $29.2Bln in April, positing that US imports may have
bottomed out. The preliminary Michigan Sentiment Index at 2pm GMT and
US Treasury secretary Geithner's testimony in front of a Congressional
panel are the other items of fundamental news on the economic calendar
for the US today.
Expect currency markets to remain confined to this week's ranges,
EUR/USD should continue to trade inside 1.3850 / 1.4050. Cable has
plenty of scope to the downside - to 1.60 although traders could be
caught off guard by upside moves to 1.6360 confirming the view that
range trading can be profitable but messy.
USD/JPY continues to look weak and we should expect re-tests of
initial support at 92.50 with room to trade down to 91.80 and any break
below would signal further moves to the downside for next week.
You can keep up to date with all the latest fundamental news on the
economic calendar, latest currency news and live currency charts by
simply following the links. I have also included details on an
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