London saw a Fairly sporadic day in terms of volume and volatility as spurts of action dominated the session. Most majors were fairly Quiet as traders looked to enter the weekend on a tame note, as the G8 meeting is being held this weekend. The meeting is not supposed to directly talk about the FX markets however, although with global imbalances around the world one must not rule anything out.
EURUSD was very quiet on the day, keeping a tight range and trading briefly above the 1.35 figure. Support around the NY lows (1.3475) held nicely as well. USDJPY also notched a quiet session as the pair grinded higher, just surpassing the NY highs. The pair looks fairly supported though around the 121.20 level and appears destined to trade higher.
Other pairs of note were the GBPUSD, EURJPY, and USDCAD. First, GBPUSD was off to a slow bid higher on the open until UK Retail Sales Report came in much weaker than expected, at -0.1% vs. exp. 0.6%, crushing the GBPUSD about 50 pips in a matter of seconds. The low in GBPUSD came in just around its 55 day SMA, or 1.9721. EURJPY also saw some extreme volatility on fundamental news as the pair took a swan dive south as it traded around 163.85 to 163.55-60 on rumors that China would hike rates more than expected. The pair has quickly recovered and like USDJPY, looks to test the market higher. USDCAD did a complete reversal once it was rejected at the 1.1000 level, collapsing 50 pips or so. Interestingly of note, the low in the pair was around the same level as May 31, 2006 multi-year trend low, or 1.10925-30.
EURUSD was very quiet on the day, keeping a tight range and trading briefly above the 1.35 figure. Support around the NY lows (1.3475) held nicely as well. USDJPY also notched a quiet session as the pair grinded higher, just surpassing the NY highs. The pair looks fairly supported though around the 121.20 level and appears destined to trade higher.
Other pairs of note were the GBPUSD, EURJPY, and USDCAD. First, GBPUSD was off to a slow bid higher on the open until UK Retail Sales Report came in much weaker than expected, at -0.1% vs. exp. 0.6%, crushing the GBPUSD about 50 pips in a matter of seconds. The low in GBPUSD came in just around its 55 day SMA, or 1.9721. EURJPY also saw some extreme volatility on fundamental news as the pair took a swan dive south as it traded around 163.85 to 163.55-60 on rumors that China would hike rates more than expected. The pair has quickly recovered and like USDJPY, looks to test the market higher. USDCAD did a complete reversal once it was rejected at the 1.1000 level, collapsing 50 pips or so. Interestingly of note, the low in the pair was around the same level as May 31, 2006 multi-year trend low, or 1.10925-30.
