Today’s Asia session was action packed with wild moves! After a somewhat sleepy start to the day, comments made by a Chinese political adviser set the market ablaze. In statements made, the advisor commented that China would not succumb to pressure regarding its currency, and may look to diversify into currencies such as EURUSD. That’s all Forex traders needed to send EURUSD screaming higher. In almost a blink of an eye, the pair surpassed all time highs made in New York. After inching higher from earlier levels into the 1.4560s, investors brought the pair nearly 100+ pips higher into the 1.4660s. The Chinese advisor would later back off of his comments causing what seemed like a limited amount of sellers to step in after the pair reached its highs, sending the pair back down into the 1.4630. However EURUSD remained well supported above 1.4600 for the rest of the session.
If the Euro move wasn’t enough for currency traders, we saw explosive moves in the other majors as well. USDCHF continued its freefall, plummeting another 100+ pips lower. After spending the beginning of the session consolidating near the 1.1450 area, the pair blow through 1.1400 with ease and was able to deal down to lows in the 1.1350s until finding some wobbly support there. GBPUSD caught a strong bid as well, sending it 70+ pips to the upside to briefly toy with the 2.0950 area. Cable traders quickly zoomed in the 2.1000 level, where stops are almost certainly lurking above. But the pair disappointed GBP bulls this time around, and halted the move higher for the time being.
Ahead in the upcoming London session, the Forex market will be looking for the next directional move. The London open of late can be described as volatile. Some moves have been continued in dramatic fashion by European traders while others have been quickly reversed in equally dramatic fashion. With the market still jittery we may be in for another wild ride!
