General Commentary
Last week’s currency trading review
The EUR/USD was in focus during another dramatic week for the FX markets. The FOMC QE3 announcement added to an already buoyant EUR/USD which enjoyed gains above 1.3000 to 1.3160 by the end of US trade Friday. The 3+ big figure move higher highlighted how bearishly the market has taken the opened ended FED QE3 commitment. Positive news out of Europe also helped sustain the rally with Germany’s constitutional court allowing participation in the ESM bailout fund.
XAU/USD was the other big reactor to the FED action. Gold and silver both surged higher with the yellow precious metal now in striking distance of the $1800 level. Investors are flooding to the alternate investment which is seen as a safe haven against central bank printing of money.
Currency Movement last week
EUR/USD was up +2.58% closing at 1.3128, after opening the week at 1.2814.
USD/JPY was down +0.18% closing at 78.36, after opening at 78.22.
GBP/USD was up +1.33% closing at 1.6220 after opening at 1.6005.
AUD/USD was up +1.51% closing at 1.0550 after opening at 1.0391.
