General Commentary
Last week’s currency trading review
The EUR/USD strength re-entered the market last week grinding up from 1.2810 to close above 1.3000 in strong trade. Spain and Greece are still in the headlines but there is a feeling now that worst is behind us for the Eurozone crisis. Spain has still not accepted the need for a larger bailout but has already asked already for a banking bailout. The ECB met and held at 0.75% although they did reiterate they are ready to buy bonds if requested via there OMT.
AUD/USD closed at fresh multi week lows on Friday after another leg lower post US NFP. The market has turned bearish on the Aussie after the RBA cut rates last week and we saw ongoing China slowdown fears. Bears are looking for a 1.0000 parity test in the coming days. China has been away last week so we will see how optimistic their investors are when they return Monday. The Chinese leadership is due for change in the next month along with the US Elections.
Currency Movement last week
EUR/USD was down +1.39% closing at 1.3031, after opening the week at 1.2850.
USD/JPY was down +0.98% closing at 78.65, after opening at 77.88.
GBP/USD was up -0.11% closing at 1.6132 after opening at 1.6150.
AUD/USD was up -1.90% closing at 1.0184 after opening at 1.0378.
