General Commentary
Last week’s currency trading review
The USD/JPY the dramatic sell off in the Japanese Yen continued last week with Japanese Officials jawboning the major from Y88 to Y91. Japanese Officials were quoted as saying Y95-100 is appropriate and that they are fighting deflation and not currency manipulating. Officials added that market forces should set the USD/JPY rate the reiterated but that the Yen is correcting from a very overvalued level. G7 rules dictate that no country should engage in unilateral currency intervention.
The EUR/USD remained the strongest currency in the market last week with only member of the G3 that is not printing money via QE. The euro broke out of ranges to the topside on EUR/GBP and EUR/JPY. Euro strength while not yet an issue for EU officials will slow down the recovery of exports. Officials must also be wary of talking down the Euro which has only just emerged intact from the Debt Crisis.
Currency Movement last week
EUR/USD was up +1.03% closing at 1.3451, after opening the week at 1.3313.
USD/JPY was up +0.90% closing at 90.88, after opening at 90.06.
GBP/USD was down -0.51% closing at 1.5793 after opening at 1.5873.
AUD/USD was down -0.79% closing at 1.0424 after opening at 1.0506.
