General Commentary
Last week’s currency trading review
The EUR/USD is enjoying a relief rally on the back of dramatic comments from the President of the ECB Draghi stating they would ‘do whatever it takes’ to save the Eurozone. The market is expecting a lot from the ECB meeting on Thursday and we are seen some high level meetings between the ECB and German and the US so perhaps some game changing news will emerge. The EUR/USD tested 1.2400 on Friday but so far this week has fallen as we get closer to Thursday’s meeting with some analysts suggesting the market will be disappointed by the ECB.
The USD/JPY rallied on Friday with EUR/JPY short covering prompting the major to lift off the Y78 level to Y78.50. The USD/JPY has been under pressure with as speculation increase FED will announce QE3 in coming months.
Currency Movement last week
EUR/USD was down +1.27% closing at 1.2315, after opening the week at 1.2159.
USD/JPY was down -0.03% closing at 78.46, after opening at 78.48.
GBP/USD was up +1.27% closing at 1.5750 after opening at 1.5623.
AUD/USD was up +0.95% closing at 1.0478 after opening at 1.0378.
