Quiet Trading on US & UK Bank Holidays, USDJPY Turns Bearish - 27.5.2013
FX markets are quiet with no economic releases expected while US as well as the UK are on bank holiday today. In addition, in the coming days consumer confidence and GDP is expected for the US, Canadian Rate decision and unemployment rates for Japan and EZ. Thus, we expect in the intraday currency pairs to remain in consolidation mood with soft volume likely to provide false signals.
On last Friday trading the Japanese Yen was strengthening against the most of its counterparties, as global major equity indices eased from recent highs on increased speculation that the FED will partly withdraw before the year end from asset purchases. Early on Monday NIKKEI 225 dropped by third consecutive trading session, it closed lower by 3.22% at 14142.65, increasing weight on the USDJPY that is shifting to a negative stream, however due to US bank holiday the USDJPY holds above the support at 100.83. Lastly, BOJ released latest monetary policy meeting minutes indicating that the policy was unanimously voted to remain the same based on recent economic developments.
Elsewhere, the EURUSD is trading around 1.2930 this morning without revealing any clues of the coming direction. The GBPUSD recovered from more than 2-month low at 1.5018 towards resistance at 1.5139. The Aussie against the greenback found strong support at 1-year low around 0.9593, reducing by more than 9% since mid April’s trading.