With no real surprises out of the G20 meeting in Toronto over the weekend, markets moved sideways with the US Dollar remaining close to Friday’s lows. G20 leaders offered no earth-shattering news after a weekend of meetings in Toronto, Canada, but planned to continue current stimulus plans and take actions needed in order to keep the current global recovery on track. EUR/USD remained hovered near Friday’s highs of 1.2393, but the pair was unable to break through the 1.2400 big figure, falling short by 4 pips. The 30 pip range of the pair helped to demonstrate how quiet the start of the week really was in Asia. Against the Yen, the Euro made slight gains, just falling short of the 110.80 mark after a start near 110.45. GBP/JPY hit a high of 134.40, although the pair remained close to unchanged near 134.50. Asian equities were mixed on the day.
The AUD/USD pushed to highs just over 0.8770, a solid performance for a pair that began last week at 0.8600 lows. Across the water to the north, the NZD/USD dropped from 0.7150 to 0.7105 after NBNZ Business Confidence fell to 40.2 from 48.2 last week. The Aussie dollar will surely be pushed by retail sales and building approval data due out on Wednesday.
With talk of solid support at the 89.00 level, USD/JPY opened near 89.25 and gained about 20 pips in slow trading conditions. The yen has made firm gains over the past week, moving from 91.50 to highs at the 89.20 level. Japanese Tankan data will be released on Wednesday.
With news that Hurricane Alex has been downgraded to a tropical storm and looked to pose no threat to oil rigs in the gulf, BCO/USD opened almost $4 higher than Friday’s $76.20 close and topped out near $78.25.
This week will wrap up in a dramatic fashion with the ever critical US non-farm payroll data.