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 excellent ECN broker.