May 21: Asian session
EUR/USD is trading in the positive territory for a second consecutive day. Today the pair tested $1.2900, but failed to overcome this level and is now trading slightly below this hurdle. Later in the day watch the US officials speaking. The market will be closely watching FOMC minutes and Bernanke’s testimony tomorrow for any hints of policy tightening.
USD/JPY is as bit up, at 102.50. Yen weakened as Japan’s Economy Minister Akira Amari tried to downplay his previous comments (on the weekend he said that further yen’s weakness may hurt “people’s lives”) and said today he wouldn’t comment on where the yen’s decline would end.
AUD/USD is trading above $0.9800 after a spike down to $0.9750 earlier today. The Reserve Bank of Australian released the minutes of May meeting when it cut its benchmark rate by 0.25 bps to 2.75%, but there was nothing new in the report. NZD/USD rose to $0.8190.
GBP/USD is trading around the $1.5250 level. Sterling strengthened from a six-week low after the BoE Governor Mervyn King said in an interview yesterday that a “modest recovery” is underway. USD/CAD recovered to 1.0250 after the yesterday’s drop to 1.0215.