General Commentary
Last week’s currency trading review
The EUR/USD back under 1.3000 last week with some profit taking and consolidation the main game. The 1.3100-1.2900 range has held for some time with investors buying on Spanish OMT access and selling while no formal application has been made. There is a chance that Spain will not request aid this year but the fundamentals are so poor it seems just a matter of time until the market forces Spain to act. The other major story is Greece Aid which could be released as soon as next week if the Trioka (IMF/ECB) report positively on Austerity reforms.
USD/JPY broke above Y80 briefly last week but finished surprisingly weak on Friday falling back to Y79.50 even as US GDP beat expectations at 2.0% vs. 1.9% q/y. The BOJ meet today and Tuesday and are expected to announce major new loose monetary policies to weaken the Yen and boost Japanese exports and Inflation. EUR/JPY is a key cross but struggled last week to hold gains above Y104 and we closed on a weak footing near the Y103 level.
Currency Movement last week
EUR/USD was up -0.68% closing at 1.2939, after opening the week at 1.3027.
USD/JPY was up +0.41% closing at 79.63, after opening at 76.30.
GBP/USD was down +0.58% closing at 1.6005 after opening at 1.6098.
AUD/USD was +0.38% closing at 1.0371 after opening at 1.0332.
