A somewhat quiet Asian session ahead of what looks to be an action packed session in London, with a slew of top-tier economic releases on the docket. With Euro looking down the barrel of what will be disappointing CPI and GDI data later at 9:00GMT, the EUR/USD pair sold off a bit in choppy trading this past session. After a pretty powerful start of 149.30, the pair chopped its way to a low of 148.65 before gaining 30 pips and subsequently losing about 20 pips from there to begin the London session near the 1.4870 level. On a happier note for the Euro, it broke a six day trend of lower daily lows despite the moderate sell off.
Looking at a 15 minute GBP/USD chart is a sad sight to behold if you happen to be long the pair as it remains under pressure due to the recent BoE Inflation Report. Keeping the 10th straight session of new lows alive, the pair hit a 1.9617 low as the UK looked forward to what is materializing into a bleak year.
Early on the Yen crosses were again sold thoroughly, but that selling later dwindled. EUR/JPY dropped almost a full handle to touch lows of 162.50, and GBP/JPY followed, although it did bounce back to 204.40, which was about 40 pips below the opening levels.
AUD/JPY was crushed once again, losing close to a big figure on its way from 0.8760 to 0.8665. NZD/JPY fared no better, falling from a pinch above 77.00 to the 76.10 levels over the course of the session. AUD/USD was again victimized this session, based on the fact that the easing cycle is almost eminent.
As could be expected, the Yen benefited from all of this initially, but after touching 109.03, the USD made a nice comeback to hit 109.50 by the end of the run.
As stated above, be aware of the plethora of data to be released in the upcoming London session…..
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