Good morning all.

Most of the majors are where we left them yesterday in Asia after holidays overnight in the UK and the US.

The only new factor to enter the market over the last 24 hours has been a geo-political one, with North Korea continuing with it’s nuclear testing programme. This should be JPY negative but the news has now been in the market for a day and is unlikely to have any additional impact, barring further developments. On the economic front, markets remain cautiously optimistic which will tend to favour further gains for EUR/USD and cable. On the market front, real money players are still buying EUR, GBP, AUD and CAD against the USD, though not in the same amounts as last week. Futures market figures show that the GBP and AUD markets are especially long so the dangers of sharp pullbacks still apply.

Good luck today.