The first Asian session of the week saw lighter volumes then usual due to a Japanese holiday. However, the market did see some risk come back on the table, as forex traders piled back into JPY crosses and weakened the USD almost across the board. With little economic data to propel the market, following the trend seemed to be in vogue.
EURUSD saw buying interest as it grinded nearly 80+ pips off Friday's close to its Asia highs. The pair was a beneficiary of a nearly 120 pip rally in EURJPY. AUDUSD and AUDJPY also saw gains of over 50+ pips.
Although cross buying fueled the rally of most of the majors against the greenback, USDJPY saw little movement, higher be only a modest amount.
Ahead in the upcoming London session, traders will be focused on whether the trend is set to continue, or if the market is setting up for a nasty reversal of risk. Light economic data in the session should have little impact.
Upcoming Economic Data Releases (London Session)
| 7/20/2009 | 6:00 | GE | Producer Prices (MoM) | JUN | 0.00% | 0.50% |
| 7/20/2009 | 6:00 | GE | Producer Prices (YoY) | JUN | -3.60% | -4.10% |
| 7/20/2009 | 8:30 | UK | M4 Money Supply (MoM) | JUN P | 0.20% | 0.40% |
| 7/20/2009 | 8:30 | UK | M4 Money Supply (YoY) | JUN P | 16.60% | 14.60% |
| 7/20/2009 | 8:30 | UK | Bank of England Releases Trends in Lending Report | 20-Jul |
