General Commentary
Last week’s currency trading review
The EUR/USD closed down slightly on the week with Spain refusing to formally ask for ECB Bond buying support. Spain is concerned about the impact it will have on other countries and is not sure that it needs support given the large drop in Spanish debt yields. The market is pricing in a Spanish bailout and the longer they stall the more likely Yields will creep higher again.
USD/JPY consolidated near the Y78 level last week and was able to finish on the front foot as US data begins to improve. UoM Consumer sentiment came in at 5 year highs at 83.1 vs. 78.1 previously. Jawboning continued at the G7 meeting where the Japanese FinMin stated that Japan can intervene alone without US consent.
Currency Movement last week
EUR/USD was down -0.58% closing at 1.2956, after opening the week at 1.3031.
USD/JPY was down -0.29% closing at 78.42, after opening at 78.65.
GBP/USD was down -0.40% closing at 1.6067 after opening at 1.6132.
AUD/USD was +0.46% closing at 1.0231 after opening at 1.0184.
