As we head closer to the Asia-Pac session, let’s take a look at where the FX majors are trading.
Sterling is in the top spot while the EUR has been the underperformer.
Can’t really put a good enough reason on the price ation yesterday.
CAD saw initial upside on a hot CPI print and then faded (would have expected a slightly bigger reaction when we consider positioning).
The Pound as the strongest currency doesn’t make a lot of sense considering the BoE last week and the upcoming election.
The EUR has reasons to trade cautiously I suppose, but with OAT/Bund spreads lower the weakness was surprising.
I’m just blaming month-end, quarter-end flows for now.
This article was written by Arno V Venter at www.forexlive.com.
