The USD opens the final Asian session of the week on a softish note with most of the majors (apart from the JPY) at or close to intraday highs. Jamie makes an excellent point on the EUR/USD that the pair is hemmed in by option interest and I tend to agree with his theory. I still think we will move gradually higher, with 1.3550/1.3825 the initial parameters. I’m long both cable (since yesterday) and AUD/USD (since two weeks ago) and my initial targets there are 1.5285 and .9320 respectively.
News releases from China regarding interest rate policy provide the biggest event risk.
Good luck today and TGIF.
