Today's Market Update

Published: September 10, 2007 6:16 AM

The first London session following Friday’s employment number began with most pairs still consolidating after their opening moves in Asia. The high yielding JPY crosses managed to rebound somewhat, following a routing of Asian equities in the previous session. As the global equity picture began to turn around, EURJPY caught a bid from session lows around the 155.80s mark, and enjoyed a 50+ pip rally to session highs during the European open. USD/JPY was also dealing higher from its days lows. After trading down into the 112.60s in Asia, USDJPY grinded higher by 70+ pips to the 113.30 neighborhood where it meet some fierce offers on several attempts to take out the level. EURUSD meet short term resistance of its own at the 1.3800 level. As the European morning drew to a conclusion, equities began to turn positive. This helped to propel USDJPY and the crosses to their day’s highs. USDJPY popped 80+ pips from it session lows in a push to penetrate the 114.00 handle. After meeting offers in the 113.80s, the pair managed to find some buyers in the 113.70s area. EURJPY broke back through and shot more than 100+ pips to the upside to test 157.00. EURUSD finally took out offers around 1.3800 to surpass Friday’s New York highs. Sterling also found strength against the greenback. A late session buying surge brought the pair off its 2.0260s lows, up 60+ pips to poke through 2.0300 and deal into the 2.0310s. In the upcoming New York session, Forex traders will be looking to the U.S. trade balance which is scheduled to be released in the New York morning. Following a week that saw USD negative , release after release, any positive news about the U.S. economy potentially may cause significant greenback strength.