Daily FX Wrap Up

Over the past few months all the majors have been trading in some of the smallest ranges in history. Hope for a major move may be close at hand. Currently, the Japanese Yen looks poised to make a move against the US Dollar. Strong Yen fundamental came in a series of news reports. Yesterday The Bank of Russia announced it will be adding the Yen to the countries foreign exchange reserve. This news coupled with a strong Japanese Stock Market could give the Yen the reason to move sharply higher. Japan itself has been moving its own currency holdings away from the Dollar by adding the Euro and swapping their US Bond holdings for their own Government Bonds. As the dollar weakens due to negative US economic reports, many analyst are wondering how many more countries are going to be following suite to diversity away from US currency. Tomorrow a report on the US housing Statistics is expected to show a decline in the over all value of existing house prices and another decline on new building permits. On a positive note, bearish news for the Dollar has, so far, only had a slight effect verse the Euro. A slight rise of only 15 pips indicates there may still be strong support for the Dollar. Starting the day at a 1.2530 level the EUR / USD shot to a high of 1.2565 before finishing out the day at 1.2545.