General Commentary
Last week’s currency trading review
The EUR/USD fell throughout the week as the US fiscal cliff crisis dominated the headlines and risk aversion spread throughout the markets. Greece’s fate is expected this week as the Eurogroup meeting is scheduled to discuss the troika’ report on Greece’s commitment to austerity reforms. Obama winning a 2nd term had a brief positive impact for the Euro with a loose Federal Reserve more likely under a Democrat.
USD/JPY was under pressure given the large drop in US Treasury Yields after Obama’s victory. Support was found though in the lower Y79 region and with US data picking up the topside could still be in play. A bigger factor could come from the Japanese side with the Government ramping up pressure on the BOJ to further stimulate the economy and out of deflation.
Currency Movement last week
EUR/USD was down -0.97% closing at 1.2710, after opening the week at 1.2833.
USD/JPY was down -1.27% closing at 79.46, after opening at 80.47.
GBP/USD was down -0.78% closing at 1.5896 after opening at 1.6020.
AUD/USD was +0.44% closing at 1.0383 after opening at 1.0337.
