General Commentary
Last week’s currency trading review
The EUR/USD is enjoying gains above 1.2500 last week with yields on Spanish and Italian debt easing and optimizing remaining strong the ECB/EU can handle the debt situation. The other major news in the market was the FOMC minutes that surprised with the comments that a majority of FED members saw the need for further easing. This sentiment will be tested at Friday’s main risk event of the week during FED Chief Bernanke’s Jackson Hole Speech. Stocks and the USD are hopeful in their expectations so there is a big chance of disappoint.
XAU/USD and USD/JPY are the preferred way to play the Bernanke Speech with both expected to move sharply on the back of any monetary policy comments. XAU/USD has enjoyed massive gains in the last week on the back of both the ECB and the US FED moving towards further Easing.
Currency Movement last week
EUR/USD was up +1.45% closing at 1.2511, after opening the week at 1.2330.
USD/JPY was down -1.11% closing at 78.67, after opening at 79.54.
GBP/USD was up +0.72% closing at 1.5802 after opening at 1.5689.
AUD/USD was down -0.13% closing at 1.0402 after opening at 1.0416.
