Analysis and Opinion »

Quiet session in thin holiday trading

Share on StockTwits
Published on

USD/JPY traded a tight range during the Asian session which was relatively quiet given that it was a holiday in Japan, which is a major market. This kept volumes thin. The pair was bid early. It fell back modestly from 118.66 to 118.40. A broadly soggy USD and Nikkei weakness helped. Support is firm from ahead of 118.00. EURJPY see-sawed between 134.17-43, capped by concerns over Greece and the Ukraine.

EUR/USD opened in Asia at 1.1324 after bouncing yesterday from 1.1270. Off a touch more to 1.1322 early, it drifted higher on broad USD sogginess on profit taking. EURUSD is holding up reasonably well considering the hawkish shift in Fed expectations and the game of who-blinks- first between the EU and Greece. The market is also short and players are loath to add to positions at this time on the risk of an EU-Greek deal. Ability to hold above 1.1250 could see moves to fill the post-US payroll gap up to 1.1450.

GBP/USD rose modestly from 1.5214 to 1.5249 in Asia. EURGBP treaded water between 0.7436-45. Stops remain large sub-0.7400.

USD/CHF fell back a bit from 0.9252 to 0.9228 in tandem with USDJPY but also remained well within its recent range. EURCHF treaded water between 1.0467-80.

AUD/USD opened in Asia at 0.7801. Dipping below the figure to 0.7792, it traded sideways initially. Weak China CPI and PPI data should have seen it fall but expectations of fresh China ease won out with short-covering sending AUDUSD up to 0.7842. Leveraged players were amongst those eyeing more China ease and now probably sooner rather than later. Hefty stops are eyed above 0.7880.

The post Quiet session in thin holiday trading appeared first on Forex Circles.

Share on StockTwits