General Commentary
Last week’s currency trading review
The USD/JPY opened the week above Y88 with Yen on the backfoot with heavy interference from the newly elected Government is expected in 2013. PM Abe wants the BOJ to target 2% inflation via increased bond purchases and monetary easing. With Japan suffering from deflation the market expects the BOJ to announce major new programs to meet the Governments demands. EUR/JPY is critical failing at Y116 but well supported on pullbacks so far.
The EUR/USD was under heavy pressure last week after failing to break 1.3300 once again we turned our focus to the downside. After the FOMC minutes gave traders a reason to buy USD the EUR/USD sank to 1.3010 on Friday. While the major is range trading in the 1.3300-1.3000 range we prefer to buy dips rather than sell rallies with the burden of proof still on the Dollar bulls in 2013.
