EUR/USD opened the session at 1.3835, fell to 10, rallied to 50 but is now back at 35. I guess the market is pretty much undecided on it’s next move. USD/JPY fell sharply to 96.00 but has rallied just as sharply to 60 and is sitting now just 10 pips above its opening level. The bearish momentum from yesterday is lacking and in the absence of any economic or political developments, we are now at the mercy of any big flows which may hit the market. The AUD has recovered nicely after model-fund selling was outweighed by an AUD/JPY buy-flow.
Sterling is struggling a bit so far this morning and EUR/GBP has already rallied nearly 30 pips which is a big move for the Asian session. Dealers put this down to some profit taking rather than any breaking developments.
