As US earnings season gets underway on Wall Street, markets are wary, giving up a significant chunk of its 20-odd% rally in recent sessions. Earnings are expected to poor, given the woebegone state of the global economy, so investors are taking a few chips off the table.
EUR/USD held above the important area of support in the 1.3095/1.3115 region overnight after China stepped in to buy the dip. In all likelohood they have a 1.28/1.38 DNT or something similar that they are working and are taking back shorts set toward the top of recent ranges. Just a guess…
Markets are quite thin and disinterested and will likely become more so as the week wears on. Lots of interbank dealers are on holiday this week and more will go as the weeklend approaches. That will extend through Easter Monday.
It is a pretty open playing field from what we hear order-wise, between 1.3150 and 1.3300. Ne careful about getting caught in the middle. EUR/USD trades at 1.3235 and USD/JPY at 100.00.