The final Asia session of the week was much like the previous holiday session in New York. With a holiday also in Tokyo , volatility continued to be low in the early going, with most currency pairs trading inside a tight range. JPY crosses, however, did manage to attract some bids. Dealing at session lows in the Asia early morning, the high yielders were once again in favor with Forex traders. EURJPY enjoyed a 50 point run from 161.00 support tested in New York. AUDJPY also popped from lows, towards the 95.00 level, where the pair fell just short, as offers stepped into the market.
Later into the morning, USD sellers entered the market in force, sending the currency lower. Perhaps the biggest move of note was USDCHF breaking through multi decade lows. Once thought to be a decent support level, the 1.1000 handle couldn’t hold off the large offers any longer. The pair broke below and triggered stops down to 1.0950s. Forex traders also bid up EURUSD, breaking the pair from resistance around the 1.4750s, and sending it rifling higher through 1.4900, to take out stops above. The greenback didn’t fair any better against the other majors, however its losses were more modest.
Ahead in the upcoming London session, the key level on most traders’ minds will certainly be the 1.5000 mark in EURUSD. With barrier related stops almost definitely around 1.5000, we may see dealers take advantage of the holiday liquidity, as we did following last year’s Thanksgiving holiday, and take this level out.
Upcoming Data Releases (London Session):
- UK: 0430 GDP (QoQ); Consensus .8%
- (YoY); Consensus 3.3%
