Range: 1.3125 – 1.3186
The Euro finished the week almost exactly where it began, in what was a very choppy week. The Euro has had an impressive come back from lows through the overnight trade. Recovering from the 2 week low of 1.3125 to reach 1.3170. The upside move represent a jump of almost 50 pips from its recent lows, as Euro takes revenge against early strength shown by the USD, coming from tensions in the Korean region. Traders should remain cautious amidst some of the most illiquid market conditions all year.
Range: 1.5480 – 1.5532
The Pound lost ground on the US dollar last week, as European debt concerns continue to worry the markets; with fundamental developments in the way of spending cuts starting to take shape within the UK. The technical outlook continues to point to more losses in GBPUSD. Traders await the BoE minutes for confirmation. Again the interest will be in whether another member calls for a rate hike or asset purchases, especially in what will be a very low liquid week.
Range: 83.82 – 84.13
The Japanese Yen was nearly flat on the week against the dollar despite periods of volatility. A lack of participation from traders will most likely lead to a quiet week, given the USDJPY current trend is safe to expect that the pair will be confined to current trading patterns. However if European news begins to spark contagion fears once again, yen strength will be favoured against most majors other than USD and CHF (the other so called “safe havens”).