Forex Market Summary

U.S. Dollar Trading (USD) was a quiet session of trade as markets in the US were closed on the back of President's Day Holiday, as bearish sentiment followed through from Friday's poor data readings. Market is expected to resume on Tuesday although the only event worthy of noting would be Fed Official Stern speaking on the state of the US economy.

The Euro (EUR) gave up some of its late rally seen last week on the back of poor data. With the absence of data coupled with US holidays, the Euro held broadly in a range trading technically for much the day. Overall the EURUSD traded with a low of 1.4611 and a high of 1.4689 before closing the day at 1.4655.

The Japanese Yen (JPY) demand for services saw its largest drop in three months with Tertiary Index fell by -0.6% from the previous month. Overall the USDJPY traded with a low of 107.76 and a high of 108.09 before closing the day at 107.65.

The Sterling (GBP) continued its decline versus the dollar, further tumbling on news that that the U.K. government plans to nationalize troubled U.K. financial institution Northern Rock Plc. Traders pushed the pair lower on concerns that other U.K. financial institution might have significant exposure to asset-backed securities and collateralized debt obligations. Overall the GBPUSD traded with a low of 1.9477 and a high of 1.9522 before closing the day at 1.9603.

The Australian Dollar (AUD) continues to find support on the back of higher commodity prices. The Aussie dollar broke through key 91 cent level during the Asian session of trade as Platinum reached an all time high, further boosted by the RBA minutes scheduled for release on Tuesday morning. Overall the AUDUSD traded with a low of 0.9071 and a high of 0.9140 before closing the day at 0.9126. As stated, further detail on the Reserve Bank of Australia future outlooks will be revealed on Tuesday, with emphasis placed on mention of the upside risk to inflation balanced with the slowing global growth.

Gold (XAU) once gain held in tight range. XAU traded with a low of 900.90 and a high of 909.25

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