With a holiday in Japan setting the subdued tone in the session, the US Dollar made some small gains against most majors, and USD/JPY did almost nothing as it traded in a tight 35 pip range. With a gloomy hangover from US NFP and stock declines on Friday as well as many investors beginning to realize that an Obama Presidency is not going to miraculously end the global credit crisis, risk aversion was back in play to start the week in Asia.
EUR/USD opened near 1.3470 and soon after dropped off to 1.3380's before a quick rebound and subsequent lows at 1.3379 for the session. The European session is very light on data this week besides the ECB meeting on Thursday, where a .50% cut looks to be the general consensus.
As mentioned USD/JPY was stuck between 90.25 and 89.91, and EUR/JPY continued to be sold from 141.47 highs to lows just under 120.40. AUD/JPY and NZD/JPY were also aggressively sold, AUD/JPY dropped to 62.15 lows and NZD/JPY bottomed out near 52.58, very good indications of a softer risk appetite. The AUD/USD took a fall today as well, from its .7025 close to today's lows of just under .6900. GBP/USD dropped from the open and then traded in a range between 1.5150 and 1.5050.
Besides the ECB rate decision on Thursday, there is a great deal of data in the US that will be the focus of most traders this week.
Upcoming Economic Data Releases (London Session):
| 12-19 JAN | JAN | FR | Bank of France Bus. Sentiment | DEC | 68 | 66 |
