The US Treasury will release their currency report on Friday and whilst the words ‘currency manipulator’ are not expected to appear, the risk factor alone should be enough to encourage a large case of profit taking regardless of the currency pair.
The commodity currencuies are showing less strength than the Europeans which is probably a sign that the market is close to full there. AUD/USD failed marginally to break above parity with some heavy option related selling in the way and USD/CAD bounced sharply after breaking below 1.00; EUR/USD on the other hand has easily maintained its grip above 1.40 and cable has also closed above an important psychological level.
Good luck today and TGIF.
