Forex Europe Review – Thin trading as major U.K. and U.S. markets closed today

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The Euro eased off its highs reached at the end of last week against the U.S. Dollar, edging down since the start of the trading week in Asia from 1.4321 down to lows of 1.4256 in European trading. Last week the Single Currency was boosted by good and positive comments by E.U. officials easing concerns about the Greek crisis, however over the weekend totally different stories came out. A report released in German magazine Speigel stated that Greece has missed all agreed fiscal targets set by the E.U. and IMF suggesting the risk of a Greek default. As negotiations are currently underway in Athens with EU officials to put through new austerity measures, the markets are waiting to see if the IMF will withhold its next tranche of aid due next month.

Sterling was trading flat against the US Dollar in the European session as both UK and US markets are closed for bank holidays this Monday. Last week GBPUSD had reached two-week highs of 1.6511 due to a weak U.S. Dollar weighed down by negative economic data. Today, the pair eased off the highs slightly but remained above 1.6457.

The Swiss Franc eased off its all time highs from Friday. USDCHF had touched 0.8462 and rebounded slightly at the start of the trading week to0.830 as investors are taking profits. The Swissy remains a favourite in a risk aversion environment. There wasn’t any significant movement in EURCHF. The pair had reached an all time low on Friday at 1.2100. Monday’s lows in the European session were at 1.2134 after opening at 1.2154 and reaching highs of 1.2183.

The Japanese Yen traded sideways today against the U.S. Dollar remaining around the lows reached on Friday. European session highs were at 80.87, lows at 80.77. Last weeks declining Dollar allowed the Yen to make gains but USDJPY’s fall was halted Fitch Ratings Agency downgraded its outlook for Japan from stable to negative on Friday.