 Last week, there was a slide in commodity related currencies, and risk correlated pairs. The Japanese yen and US Dollar were beneficiaries of this environment. This week, we saw this dynamic reverse a bit. Still, this may still be just consolidation setting up for continuation… |
 Last week, I mentioned we should be getting ready for a rotation out of risk into commodity. This week, we saw commodity and commodity related currencies fall sharply. The Yen was a strong performer this week in the risk adverse environment. The Euro however… |
 The daily time frame for the Euro versus the Japanese Yen has been steadily making new lows each year, the most recent being the 110.62 low on May 6. |
 This week was an important one to assess how the market is reacting to last week’s shaker. The fundamental front is dominated by EU woes but the market is also starting to realize greater structural implications globally. The discussion now is whether this current crisis will derail the recovery in Europe and the US.. |
 Last week, the market remained in consolidation, but sentiments were building. As the EU kicked around the can a little longer regarding the Greece debt situation, the equities market grew more and more impatient… |
 This market was in a broad based consolidation. Even cross pairs created from the weakest paired with the stronger currencies such as EUR/CAD is finding bottoms. In these periods, it is important to follow the structure of the consolidation… |
 This week, the Euro and the Japanese yen stood out as losers. The Euro remains pressured in the cloud of uncertainty that surrounds the Greek debt situation. The market was also returning to Japanese weakness. April until this week has seen mainly yen-strength, but perhaps… |
 Over the previous weekend, the EU promised a bailout will be provided if requested by Greece. This gave the euro a boost to begin the week, creating opening gaps across the board. By the end of the week however, the initial momentum fizzled, and the EUR/USD closed its gap. Friday saw some strong risk averse moves seen in the JPY and commodity currencies such as the CAD and AUD. |
 The Euro continues to be pressured, but the greenback is giving back some of its recent strength as well. On the other hand the Japanese currency stalled its slide, though there has not been any significant show of strength. These developments may |
 This week, we saw continuing weakness from the Japanese yen. The greenback, which was gaining last week, consolidated ahead of Friday’s Non-Farm Payroll from the US. After the important release, greenback strength returned. |