FX Trading

The Euro was directionless during the overnight trade against the U.S. dollar amid a light economic docket. Looking ahead, we may see a lackluster performance in the currency markets as many traders are offline in observance of the U.S. Labor Day holiday.

All is quiet in the markets thus far on Monday with currencies locked in some tight consolidation in Europe.

The US Dollar and Japanese Yendeclined as risk appetite carried over from Friday’s trade pushed shares higher in Asian hours, sapping demand for the safety-linked currencies. Stock index futures hint more of the same ahead.

Will economic optimism from last week carry over into the coming holiday-shortened week? Regardless, the direction of markets will be extremely telling with regard to whether the latest move was merely an oversold bounce or the start of a new trend.

The market continues to correct out from the late August 1.2585 lows, with the latest gains now threatening a break back above some key short-term resistance by 1.2925.

All is quiet in the markets thus far on Monday with currencies locked in some tight consolidation into the European open.

Forex markets are seemingly poised to extend last week’s forceful recovery in stocks-correlated currencies but seasonal factors may complicate the sentiment landscape, opening the door for a return to risk aversion.

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Euro Forecast Turns Bullish on S&P 500 Rallies – Test of 1.30 Likely

Japanese Yen: Currency Intervention Grows Ahead of BoJ Rate Decision

British Pound May Rise With Stocks But Seasonal Factors, BOE Threaten

Canadian Dollar Looks to BoC Rate Decision for Next Moves

Australian Dollar May Gain Further on RBA Expectations, S&P Strength

New Zealand Dollar Tracks Risk as Seasonal Forces Complicate Rebound

Gold Continues to March Higher Despite Positive Speculative Lean