Published: September 23, 2007 11:00 PM
The first Asia session of the week saw Dollar selling in the currency markets once more. Following the first few opening hours of the week that saw many of the majors digesting moves made on Thursday and Friday, the greenback experienced a new wave of offers. With no economic data released during the session, it was apparent that most Forex traders were focusing on technical levels, specifically lows in the USD.
A midsession selling spree caused most pairs to break out of their recent consolidation patterns. EURUSD was one of the bigger stories of the day. After dealing range bound and contained under the 1.4100 level, buyers entered the market quickly and the level gave way. Dealing up 30+ pips from its session low, the pair was able to establish yet another all time high. GBPUSD was volatile trading as well. The pair began the session supported at 2.0200. Sellers took cable below in illiquid trading briefly before dollar sellers took hold of this pair as well. GBPUSD then mounted a rally, jumping 70+ pips into 2.0260s. USDCHF also continued to deal close to multi year lows. The pair broke through the 1.1700 support area once again, but stopped short of the medium term support level of 1.1680.
Ahead in tonight�s upcoming London session, no economic data of high relevance is scheduled to be released. Much like the previous session, currency traders will be keeping their eyes on key levels that have been established. We�ll likely see London traders take a stab at Asia highs in EURUSD. With buy stops likely building above this level, we could see the 1.4200 level touched. Focus will also be on GBPUSD after its recent pop, and USDCAD, quiet during the Asia session, but very much still in play.
Upcoming Data Releases (London Session):
UK: 4:30amET: Public Sector Net Borrowing (Est.: 6.5 bio / Prior -6.5 bio) Relevance � Low
Public Finances (Est.: 3.5 bio / Prior: -13.1 bio) Relevance � Low
EC: 5amET Industrial New Orders (Est.: -3% / Prior: 4.4%) Relevance � Medium