US Fiscal Cliff
Dominates
Last week’s currency trading
review
The EUR/USD remained strong last week with the finalization of
the latest Greece aid tranche allowing the major to test resistance above
1.3000. EUR/JPY is providing support on dips with a long term reversal on the
charts indicating large upside potential. The ECB meet this week and will likely
to hold at 0.75% but attention will be on the ECB President press conference
later.
USD/JPY was strong but failed to retest the multimonth highs
at Y82.80 and instead traded in an Y82-Y82.60 range. Yen crosses were very
strong with EUR/JPY and GBP/JPY hitting fresh highs at Y107 and Y132. 2012 highs
for both are found at Y110 and Y134 respectively back in April. Upcoming
Japanese elections are providing plenty of headlines to sell the Yen with both
political parties backing aggressive monetary easing from the BOJ to help
increase inflation and growth.
Currency Movement last week
EUR/USD was up 0.03% closing at 1.2982, after
opening the week at 1.2978.
USD/JPY was down 0.41% closing at 82.45,
after opening at 82.11.
GBP/USD was down -0.14% closing at 1.6010
after opening at 1.6031.
AUD/USD was -0.25% closing at 1.0427 after
opening at 1.0453.
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