Forex Market Review – Euro holds onto gains in overall quiet Asian session

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Euro held onto gains made following the successful Spanish bond auction and comforting words from ECB President Mario Draghi on Thursday. EURUSD opened in Asia at 1.2812 and extended up to 1.2849. Market sentiment appears to remain optimistic as the focus now turns to the Greek debt crisis and a near solution. Media reports indicate that a solution is close and a debt swap deal may be concluded soon. A deal with private creditors to voluntarily write down at least 50 percent of the value of their Greek sovereign bonds has a good chance of happening in the coming days.

 

GBPUSD tracked gains in the euro and closely mirrored EURUSD movements. Cable opened in Asia at 1.5329 and was range bound most of the session between 1.5325 – 1. 5352 with an upturn towards the European open.

 

The Australian dollar appears to be heading into a range ahead of the weekend. With lack of economic data and after making sharp gains on Thursday, investors took the opportunity to book profits. AUDUSD opened at 1.0329 and headed down to 1.0301 before a slight bounce to 1.0332.

 

The Swiss franc retraced against the dollar and euro after making strong gains on Thursday. EURCHF moved off the Thursday low of 1.2086, the lowest since 20 September 2011, and bounced to 1.2115.

 

 

USDJPY remains range-bound 76.6582.