And thus ends a very dynamic as well as historic week in the European currency…The EUR/USD hit a fresh 14 month low of 1.2515 in early Asian trading to complete an almost six big figure drop from Monday’s euphoric highs after the almost $1 Trillion dollar rescue plan was introduced by the European Union. The slide commenced as investors found holes in the plan to protect the EU from sovereign debt contagion, and also as they wondered how feasible austerity measures would be once bequeathed upon the general populace. Regardless, today’s session is a rough ending to a rough week for European currency which looks in need of a weekend of rest before what will probably be a turbulent week ahead. Despite the early EUR/USD low to 1.2515, the pair managed to spend the latter part of the day closer to 1.2547 highs. Heading into the London trade session keep a wary eye on the 1.2500 level which could open a trapdoor to a vicious stop driven drive lower for the pair.

Among other currencies, the US dollar regained some strength as the GBP/USD dipped to 1.4570 amidst the conjecture in the UK that now that the pleasantry of the UK elections is all wrapped up, there is some real serious business to be dealt with fiscally. AUD/USD spent some time under 0.8935 to post lows, but eventually made its way up to 0.8970 highs as commodities remained range bound. After New York highs near $1243.00, XAU/USD was steady between $1238.50 and $1231.00 for the day. WTI/USD traded in a peaceful 40 cents range with highs at $78.72.

Over in Japan, the USD/JPY traded in a range once again near 92.50 – 92.90, as cross yen pairs remained soft with equities mostly in the red to wrap up the week. New Zealand retail sales were disappointing, (0.5% vs. 1.2% expected) sending NZD/USD from 0.7145 to lows just under 0.7110, and AUD/NZD took advantage of the drop in the Kiwi with a push to 1.2585 highs for the session.

No real data to look to in the London Session, and looking further ahead, the US closes out the week with retail sales and University of Michigan Consumer Sentiment. Have a nice weekend…