FX Daily Wrap Up

The USD has finally started its climb against the Aussie today after hitting a 17-year low of 0.8357. Since Friday, the Aussie has declined only 35 points to the current 83.25 in a great short-term trending sweep. Also this weekend, the G7 meeting provided little new information to digest, maintaining a similar tone on the stance of currencies. Japan was not singled out over the weakness of the Yen, but the situation was alluded to in the statement “excess volatility and disorderly movements in exchange rates are undesirable for economic growth.” Traders took this as reiteration of the current position of holding off on intervention unless market conditions warrant a change. The group also repeated its calls for China to quickly move toward a more flexible currency. Today in the majors, the EUR/USD is still trading over the 1.3500 mark and seems to be holding near the 1.3540 level. For the GBP/USD, 1.9890 seems to be the afternoon’s new short-term resistance. After crossing the mark early in the day, the GBP/USD has leveled off in light trading and appears to be content with this position. This week has started off with a bit of unexpected movement, which may continue throughout the week. XPRESSTRADE Analyst David Hilgeman