EUR/USD is at 1.4865, cable 1.4510 and USD/JPY 88.85 after a relatively uneventful weekend. The factors affecting the market at the moment are:
- market sentiment as global stimulus packages start to wind down
- the value of the CNY
- intervention in emerging markets’ currencies
- the rising gold price
- possible problems in the European banking sector
- market positioning
The latter factor always takes on increasing importance in December as positions are unwound and markets are traditionally thin and volatile.
Good luck today.
