Currency Updates:
U.S. Dollar Trading (USD) the USD hit 4 year highs on Friday as the EUR/USD broke through 1.2500 on Spanish concerns and investors flooded into the safe haven. The USD gains heavily from negativity as the only reserve currency that investors can flee too currently. The mood in Asia on Monday morning has been better though as we are seeing USD selling across the board as the stocks move higher. Looking ahead, Bank Holidays in Europe and US today for Memorial Day.
The Euro (EUR) news the Spanish Catalan state needed a bailout hurt sentiment and helped EUR/USD sellers break the 1.2500 barrier briefly but good support was seen underneath and we finished near opening levels at 1.2520. The EUR/USD opened up strong on Monday however as weekend polls showed the radical left in Greece were losing support and this is lowering the chance of Greece leaving the Eurozone.
The Japanese Yen (JPY) the USD/JPY has been caught in an Y79.50-Y80 range with the USD strength and Yen Strength both competing for the strongest safe haven lately. The Yen crosses are still where the action is and we are looking to trade both ways taking advantage of the recent volatility.
The Sterling (GBP) the GBP/USD found support at 1.5650 but is struggling to bounce off the Greece news as EUR/GBP is rebounding as well. The market is oversold on the short term and we could see a move back to 1.5800 if the sentiment improves. Looking ahead, Bank holiday in Europe but UK is open as normal.
Australian Dollar (AUD) the AUD/USD spent most of Friday under pressure but has opened the week so far strong now above 0.9800 and a relief rally here may see a test towards 0.9900. Looking ahead, no data today.
Oil & Gold (XAU) Gold staged a rally from a dip to $1560 up to $1575 resistance in a bullish close. OIL/USD is recovering from its dip below $90 and is now the front foot now at $91.75 in Asia on Monday targeting the $93 resistance.
