6 Jan 2015
Session Recap: This is Forex! EUR/USD tests recession lows; JPY & USD up
FXStreet (San Francisco) - As you may know, Forex is a very liquid market with lots of items that can affect the price of the unit. So, it's better you bet on a wild Monday as investors had to digest Greek exit fears, stocks fall and lowest oil prices in over 5 years.
After a fast and furious 100-pip drop in the first hour of the trading session, the EUR/USD fell to 1.1860 on the news. The market sold the Euro and the currency fell to its lowest level since March 2006 against the US dollar. Yes, in 2006, and at the same time just under the minimum area recorded during the great recession in 2010.
On the commodities desk, the oil collapsed over 5% in the day as the WTI fell below the $50 area to a low of $49.65. The movement dragged stocks down and supported the US dollar. The king Greenback extended gains versus its major competitors.
The GBP/USD declined 0.48% on the day to 1.5251; the EUR/USD fell 0.55% to 1.1934 while the USD/CHF rose 0.53% to close above parity at 1.0067. The USD/JPY, however, was different. The yen traded on a heavy note and make it itself the winner of the session.
Top five losers were Yen crosses; understanding that the JPY ISO 4217 code is on the right side. So, EURJPY dropped 1.29%; CHF/JPY was 1.27% down on the day; NZD/JPY declined 0.78%; while AUD/USD tumbled 0.75% on Monday.
According to Sean Lee, "prime brokers are reporting some heavy profit taking in USD/JPY overnight which had a knock-on effect on other speculative positions such as the short EUR trade."
Markets were all about sentiment this Monday, risk on and risk off. Of course the gold advanced for second day on safe haven mode. Take in account that we have Nonfarm payrolls on Friday.
After a fast and furious 100-pip drop in the first hour of the trading session, the EUR/USD fell to 1.1860 on the news. The market sold the Euro and the currency fell to its lowest level since March 2006 against the US dollar. Yes, in 2006, and at the same time just under the minimum area recorded during the great recession in 2010.
On the commodities desk, the oil collapsed over 5% in the day as the WTI fell below the $50 area to a low of $49.65. The movement dragged stocks down and supported the US dollar. The king Greenback extended gains versus its major competitors.
The GBP/USD declined 0.48% on the day to 1.5251; the EUR/USD fell 0.55% to 1.1934 while the USD/CHF rose 0.53% to close above parity at 1.0067. The USD/JPY, however, was different. The yen traded on a heavy note and make it itself the winner of the session.
Top five losers were Yen crosses; understanding that the JPY ISO 4217 code is on the right side. So, EURJPY dropped 1.29%; CHF/JPY was 1.27% down on the day; NZD/JPY declined 0.78%; while AUD/USD tumbled 0.75% on Monday.
According to Sean Lee, "prime brokers are reporting some heavy profit taking in USD/JPY overnight which had a knock-on effect on other speculative positions such as the short EUR trade."
Markets were all about sentiment this Monday, risk on and risk off. Of course the gold advanced for second day on safe haven mode. Take in account that we have Nonfarm payrolls on Friday.