Afternoon Forex Overview

Daily Forex Fundamentals | Written by Dukascopy Swiss FX Group | May 04 09 15:02 GMT |

Previous session overview The dollar is modestly higher against the European currencies but lower against the Australian and New Zealand dollars in light trading Monday New York morning. Holidays in Japan and the U.K. and a scarcity of market-moving data have kept trading constrained in the overnight session and in early North American trading Monday. The euro come under some selling pressure after Axel Weber, a member of the European Central Bank Governing Council, said German gross domestic product is unlikely to rise before the second half of 2010, as the country is mired in the sharpest recession since World War II. Weak German retail sales data also weighed on the common currency, accentuating its consolidation after last week's gains. The yen remains on the defensive and while the dollar has risen modestly this morning, it is still fairly near its recent lows against the European currencies. The euro is at USD1.3232 from USD1.3261 late Friday. It is at JPY131.59 from JPY131.72. The dollar trades at JPY99.45 from JPY99.28. The dollar is at CHF1.1410 from CHF1.1369, while pound sterling is at USD1.4862 from USD1.4890. Market expectation EURUSD spiked to USD1.3325 area but remains shy of overnight highs at USD1.3347 seen in Asian trade. Thin conditions and firmer US stocks driving the pair higher. USDJPY euro-yen continues to lift on improved risk-appetite but euro-dollar the pair taking the strain, leaving dollar-yen to meander in a narrow range near JPY99.50. Offers seen in place at JPY99.60 with stops said positioned above there. EURJPY has rebounded JPY132.50 area after seeing early lows a big figure and more lower, the pair recovering on the back of firmer US stocks and a vigorous bounce in euro-dollar. Dip in the pair left intact earlier reported bids at JPY131.25 and rebound remains shy of know supply at JPY133.00, positioned above the overnight high of JPY132.85. Currency traders are wary ahead of several key events later in the week, including meetings of the European Central Bank and the Bank of England, the release of government stress tests for U.S. banks, and nonfarm payrolls data for April for the U.S. on Friday. Dukascopy Swiss FX Group Legal disclaimer and risk disclosure This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.