The trading week begun with a slightly downbeat start as investors failed to make significant market moves in the Asian trading session. In what is a quiet day on the economic calendar many investors have adopted a wait and see policy on some of the riskier positions taken at the back end of last week.
The EUR/USD was down 0.08%, trading at 1.3164 with the pair most likely finding support around the Thursday’s low of 1.3004 whilst testing the resistance level of Monday’s high at 1.3187. The largest movement so far was seen in the USD/JPY pairing, down 0.39%, trading at 83.12. Support is likely to be found at the 82.96 mark which was Wednesday’s low with resistance likely to be tested at the 841.18 level which is Thursday’s high. The mixed response to the USD was reflected in the US Dollar index which measures the greenback against a basket of 6 weighted currencies and was down 0.02%, trading at 80.06.
There was some positive news emanating from the UK which helped to marginally boost the British Pound in Asian trading with the Cable (GBP/USD) up just 0.01%, trading at 1.5845 having made similarly marginal declines earlier on. The Boston Consulting Group declared that the internet contributes 8.3% of the total UK economy; the highest share of any of the G20 economies and making it the most internet based economy in the world. The GBP was also up against the Swiss Franc, increasing 0.04% to be traded at 1.4513.
The mixed and somewhat lackluster start to the trading week was also reflected in the commodity markets with Gold up 0.11%, trading at 1657.65 and Silver down 0.30%, trading at 32.505.
On a particularly quiet day on the data release front, investors should look for increased market volatility at:
12.35PM GMT – USD – FOMC Member Dudley to speak
2.00pm GMT –USD – National Association of Home Builders to release its Housing Market Index.
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